50-year loan options
The essential 50-year mortgage loans have been recently introduced.
The longer loan term means the monthly payment will be less than a similar 30-year term.
In an environment of rising interest rates, this type of loan offers a new option for borrowers looking for a lower payment. This type of loan can partially offset increased interest rates.
These types of loans are now offered by a variety of lenders.
Checklist to see what qualifies These types of loans are available for different types of properties, including primary residences, vacation homes, and rental properties.
A borrower can apply with a variety of different levels of documentation, including:
- Full documentation
- Declared income, verified assets
- Declared Income, Declared Assets
The 50 year loan term comes with different options for how long it can be arranged. Loans are offered that are fixed for up to 30 years, but usually no more than this.
50-year loans generally have balloon payments at the end of 30 years. This isn’t usually a problem, as most people don’t keep a loan for 30 years.
Credit scores for this type of loan can be as low as 500, depending on other loan factors, including the equity in the property.
These loans can also be up to 100% of the value of the property.