Jahari, no one would keep their mortgage for 50 years. I don't think we've kept a note longer than 3 my entire adult life of owning homes, having purchased my first house when I was 19 for $1 (VA no-no, of course!).
Jahari, everyone has different financial needs that depends on many factors (not just bad credit). For example, I currently have an interest-only loan. The extra money we're saving goes into our retirement account making much better interest than the house would and we got enough cash back to finally get the improvements we've been wanting. I had a ton of equity and owed very little, so for us, it's the best deal around plus a great write-off this past year. For others, this could be their worst nightmare. To each their own and for some, a 40 or 50 year loan would be the only way they could keep their payments down on a new purchase (perhaps their first home!) or a refi. And sumprime lenders are a life-saver for many folks - Bad things happen to good people. Besides, the customer's rate and terms aren't any of our biz anyway as loan signers - poker face it is, no matter what I'm seeing on the docs. |
