50-Year Mortgage Creating Home Owners, But With Risk - KAIT Jonesboro, AR - Region 8 News, weather, sports

Jonesboro, AR -- Heather Flanigan Reports

50-Year Mortgage Creating Home Owners, But With Risk

May 10, 2006 – Posted at 4:01 p.m. CDT

JONESBORO, AR -- As home prices and interest rates continue to rise steadily, lenders are trying to figure out how to keep the dream going for the millions of folks who want to own their home. A new half-century mortgage may do the job, but it comes with some risk.

According to a report Wednesday in USA Today, a handful of small lenders have now begun offering 50-year adjustable rate loans to help buyers keep payments low during the current economic conditions.

“The loan in question is basically a five year arm, or adjustable rate mortgage and it's maturated over 50 years,” said Regions Bank mortgage loan officer Brian Arnold.

The loans are primarily for real estate in California , where the median household purchase price is a little over $500,000 dollars.

“You're able to get into a more expensive house, but if you have to maturate it over fifty years, I think you are trying to purchase more house then you really can afford,” said Arnold.

The 50 year mortgage is ideal for those who plan to stay in their home for about five years, while the loan's interest rate remains fixed.

“Most people haven't gone to that level yet with interest rates rising but that may be one option for them. It does require five percent down,” said Arnold, “The difference in the payment is not that much, but it may allow that borrower to go from $100,000 to $120,000 loan.”

While a 50-year mortgage may not be that common in Region 8, it does signal that a cooling real estate market is heating up competition among lenders.

Many banks do offer a 40-year mortgage, including Regions Bank, which account for about 5% of all home loans.

  • Region 8 News</span><a class="customMoreLink" href="/Global/category.asp?C=4391" target="_top">More >></a>Region 8 NewsMore>>

  • From Wheelchair to the Boston Marathon

    From Wheelchair to the Boston Marathon

    Wednesday, May 24 2017 11:34 PM EDT2017-05-25 03:34:21 GMT

    In April, Williams Baptist cross country runner Alex Van Herpen competed in the prestigious Boston Marathon. An incredible feat. Learning about his path to get there, it stopped me in my tracks. Five years ago Alex was bound to a wheelchair. in January of 2011, he was diagnosed with strep throat, the flu and mono all within a two week period. For five months Alex was bound to a wheel chair. One day he just got up and walked. Medical experts had no explanation for any of it.  ...

    In April, Williams Baptist cross country runner Alex Van Herpen competed in the prestigious Boston Marathon. An incredible feat. Learning about his path to get there, it stopped me in my tracks. Five years ago Alex was bound to a wheelchair. in January of 2011, he was diagnosed with strep throat, the flu and mono all within a two week period. For five months Alex was bound to a wheel chair. One day he just got up and walked. Medical experts had no explanation for any of it.  ...

  • Traffic stop uncovers drugs, stolen gun

    Traffic stop uncovers drugs, stolen gun

    Wednesday, May 24 2017 10:40 PM EDT2017-05-25 02:40:17 GMT
    Eiichi Moore (Source: Craighead County Sheriff's Department)Eiichi Moore (Source: Craighead County Sheriff's Department)

    Jonesboro Police Officer Joseph Bransetter pulled over a car for no license plate illumination shortly after 9 p.m. Tuesday. Bransetter said after coming into contact with the driver, Eiichi Moore, he noticed the smell of marijuana.

    Jonesboro Police Officer Joseph Bransetter pulled over a car for no license plate illumination shortly after 9 p.m. Tuesday. Bransetter said after coming into contact with the driver, Eiichi Moore, he noticed the smell of marijuana.

  • Organizers switch to Plan B for Portfest

    Organizers switch to Plan B for Portfest

    Wednesday, May 24 2017 10:19 PM EDT2017-05-25 02:19:06 GMT
    (Source: KAIT-TV)(Source: KAIT-TV)

    Several people are gearing up for this year's Portfest Festival. But, the location has changed.

    According to Julie Allen, director of Newport Area Chamber of Commerce, they're moving this year's Portfest Festival to downtown Newport.

    Several people are gearing up for this year's Portfest Festival. But, the location has changed.

    According to Julie Allen, director of Newport Area Chamber of Commerce, they're moving this year's Portfest Festival to downtown Newport.

Powered by Frankly