50 Years?

Next up: 50-year mortgage
Once a mere topic churning in the rumor mill, the 50-year mortgage made an appearance on the market a few months ago and more lenders are jumping on. MILA, Mortgage Investment Lending Associates, on Thursday said it has launched the "50/30," a new product targeting non-prime and Alt-A borrowers.
"The 50/30 contains a balloon feature in which the loan is amortized over 50 years with a final balloon payment due 30 years from the first payment due date. This offers homeowners a lower monthly payment without the major increases associated with other loan products like Interest Only or Payment Option ARMs," according to the announcement.
The mortgage fashion runway is getting pretty crowded. Runway clothes look great on models who are strutting and turning on the catwalk, but not so practical on regular people living regular lives. There's a camp of skeptics viewing the latest mortgage fashions the same way. We just hope borrowers are getting educated on all the terms and options so they don't find themselves walking down the street naked.
--Jessica Swesey, Inman News