Getting a 50-year loan is a perfect way to avoid an interest-only or payment-option adjustable-rate mortgages.

The 50 year loan is a great alternative for people that don't qualify for Interest Only programs.

With a 50 year amortization you will still be making principal and interest paymemts, so you will be paying down your mortgage balance.

A 50 year loan may be necessary to help a client qualify for a mortgage loan. The lower payment on the 50 year loan can sometimes become the difference between qualifying and not qualifying for a home loan. You can always make extra payments towards the principal of your mortgage payment so that you can pay the mortgage loan off much sooner than 50 years.

As the interest rates increase and the refinance market struggles you will see many different programs become available. The 50 year loan is a great example. Lenders still need to offer products that will generate business in a difficult lending environment. This product is one that will keep payments low and still charge a decent rate for the investors. Certainly there will be very few if any who actually stick with a 50 year loan till the end. Most will refinance in the future for a lower term.

Pros and Cons Of A 40, 45 or 50 year Loan - You may have heard that there are now 40, 45, and even 50 year mortgages being offered by some lenders. While some are happy to see the lower payments that these loans offer, others quickly dismiss them due to how long it will take someone to payoff the mortgage completely. If you are considering this type of loan here are the pros and cons to a longer amortization term.

These 40, 45 and 50 year mortgages are easier to qualify for than interest only loans. So depending on your credit situation it may be the best solution for you and you're paying down some of the principle every month.

The era of a homeowner sticking to their housepayments for 30 years and paying the house off completely is all but dead. Homeowners refinance every 3-5 years. Sometimes its for cash out and sometimes its for a lower term on the mortgage. So taking a 40 or 50 year term isn't all that bad. It is one way to reduce your payments and accomplish the objectives of the loan. Just keep in mind that you will probably refinance again to reduce your term.

To save a very minimal amount of money and add 10 or possibly even 20 more years to your mortgage does not make a lot of sense most of the time. On a 100,000 mortgage at 7% interest for 30 years your principal and interest payment would be $665/month. On that same 100,000 mortgage at 7% for 40 years, your principal and interest payment would be $621/month (a savings of $44/month for an extra 10 years of payments). On the same 100,000 mortgage, again at 7% for 50 years, your principal and interest payment would be $601/month (a savings of $64/month for an extra 20 years of payments). Adding an extra 10 years of payments based on the aforementioned numbers would add and extra $74,520 worth of payments to your mortgage for a whopping $44/month savings. Therefore, the savings are not nearly as grand as one might think by stretching your mortgage term out for an extra 10 or 20 years. However, sometimes the longer term may be necessary in order for you to qualify for the mortgage loan due to debt to income ratio restrictions and due to other reasons as well. Consult your mortgage professional to find out if a 40 or 50 year loan might be right for you.

Many renters prefer mortgages with longer loan terms because the monthly payments are not much more than the rent they otherwise pay. In states where the closing costs to refinance are high, many do not intend to refinance their loans once they move in to their homes. In this case, 50 year mortgage may be a prudent choice.