Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG semi-real estate-related chart(s).
Since real estate purchases evolved from “saving for the down payment” to “making the monthly payment”, the rise in mortgage rates over the past 9 months (except for the past 6 weeks) has helped speed new products to market, namely the 50-year mortgage [CNN/Money] .
However, what good is a mortgage with such a lengthy term to a lender if the mortgagor isn’t around to make the payments? Of course, this is pretty theoretical since only a small percentage pay off their mortgages. Most refinance periodically or sell to cash out.
The average life expectancy is rising as discussed in the article Living Large and Healthy, but How Long Can It Go On? [NYT] .
Seems like the same question we were asking last year about the housing market.
So a 50 year mortgage doesn’t seem quite so out of the ordinary compared to 50 years ago (of course you’d be debt free right now).