50 Year Morgage: This is a type of loan that is amortized over a term of 50 years or
600 Months. It can be either a Fixed Rate or an Adjustable Rate Loan and, in fact, most of these
loans today are actually Adjustable Rates. The reason for this is that 50 yr Terms are generally
intended for borrowers with less-than-perfect credit that would normally get a so-called
'subprime loan'. Because these loans typically have interest rates higher than regular 30 yr Terms
the 'amortization term' is stretched out over 50 years in order to offset the effect of the higher
rate. The result is a loan that has a reasonable monthly payment even if the interest rate is
higher than normal (on account of having low credit scores).
If you compare a 30 year loan of $90,000 at a rate of 7.5% to the same loan done at a 50 year term
then here are your results: the 30 yr Term would have a monthly payment of $629 and the 50 yr Term
would have a payment of $576.
50 Morgage - Rates & Calculator - Save Each Month With A 50 yr Term...
