50 year mortgage, 40 year mortgage, still exist?
There are many questions about 40 year mortgages and 50 year mortgages, it used to be a "great" mortgage loan to have 3 years ago, most people wanted these loans because it's reducing their payments, but they didn't understand why it's reducing their payments.
what is so bad with 40 year mortgage loans and 50 year mortgage Loans?
Why only (or most) people that would have bad credit would apply for 40 year mortgage Loans and 40 year mortgage Loans?
Why the banks are not doing these type of mortgage loans anymore?
40 year mortgage and 50 year mortgage have something to do with our real estate market today?
OK, let's think about it for a second.
Banks used to take more risks, providing loans to people with no income, telling them "we will help you to reduce their payments so you can afford to buy a house or refinance your existing house. They're just talking about the good in refinancing and purchasing a home, the market was Booming then, so it's ok.
No it's not ok, what banks didn't tell their borrowers is that in a 40 year mortgage an 50 year mortgage they will never finish to pay their house, the interest is so high that there is no more money to pay the principle left, one day the person that bought the house would just give up and realise that the bank just put him in trouble, and they didn't help him at all.
Banks just don't care, banks are just multi million dollars corporation that live from sucking other people's blood (money), so by them giving us "the opportunity to buy a house or refinance a house", they're basically just putting us in more debt, more liability so we going to loose our home which is everybody dream today.
Today it's a little different, people are always thinking about money and thinking about many different ways to save it. That is good, very good, but why we have to go through this nightmare to understand that?
Because we're human, and I believe that we're thinking about how to make things better only when we're not busy being happy, making money and spending it.
So 40 year mortgage Loans, 50 year mortgage Loans are over together with all the sub prime market in America.
Yanni Raz |
