Avoid the 50-year mortgage loan like a scam. While technically not a scam because all the terms are fully disclosed to you, it is a TERRIBLE deal for you and a big money-maker for the bank or mortgage company.
You must understand this: When borrowing money, your main “enemy” is not the interest rate. It is time!
It is paying off a loan over 30 years that makes it so you pay three times more. That is why advisors like Dave Ramsey and myself and hundreds of honest loan officers love the 15-year loan so much. It saves you a boatload of money.
But now stretch that out over 50 looooong years? Are you kidding me? The total you will pay for your home is insane!
I’ve been asked quite a few times over the past few weeks what I think of the 50-year mortgage, so let me be perfectly clear: IT IS HORRIBLE. AVOID IT. SAY NO.
You will not build up equity with the 50-year loan.
You will not own your own free-and-clear in your retirement years if you pay as agreed for 50 years.
Any questions about this, please drop a comment in the comment box. I read all comments within 24 hours.
Thank you and God bless.
