Loan 100 years amort.

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andyols

107 Posts

Posted - 12/28/2007 : 8:34:40 PM

I'm looking for lender who can offer loans to borrower with 50-100 years amortization?

dpm

2727 Posts

Posted - 12/28/2007 : 8:38:49 PM

LMAO!

I actually heard they do 100 year loans in Japan I think. They call it a Grandfather mortgage or something. It get's passed on when they die.

Are you serious, really? Am I really that drunk tonight and maybe just read that wrong.

SoCalRay

1146 Posts

Posted - 12/28/2007 : 8:39:47 PM

They are actually common in Europe

mortgagemessiah

7842 Posts

Posted - 12/28/2007 : 8:44:17 PM

You saw alot of 50 or 75 year am loans in 1930's in order to entice people to mortgage their homes after the Great Depression. I did one when I started in the business. She need to do a cash out to pay her tax bill. She only owed like $500 on the mortgage and it had changed hands like a dozen times because of bank mergers.

racerx

11048 Posts

Posted - 12/28/2007 : 8:45:38 PM

Didn't First Franklin have a 50-year loan?

Either way, interest only is a better option.

dpm

2727 Posts

Posted - 12/28/2007 : 8:47:55 PM

What about a 100 year option arm with no recast?

Mandyvilla

2702 Posts

Posted - 12/28/2007 : 8:49:13 PM

sounds interesting. Kind of like the Option ARM on a 1M property w/out the risk of neg am. I think if we had buyers in long term loans and not neg am, we wouldn't be in the world of hurt we are in......and housing would be affordable. Going to have to run the numbers in the morning after some sleep.

racerx

11048 Posts

Posted - 12/28/2007 : 8:49:28 PM

quote:
Originally posted by dpm

What about a 100 year option arm with no recast?

I'd get that for my in-laws.

andyols

107 Posts

Posted - 12/28/2007 : 8:55:23 PM

Japan or Switzerland they do for over 70 years, who does in USA?

visionmtg

524 Posts

Posted - 12/28/2007 : 8:57:09 PM

Yeah but isn't long term loans & the payments associated with them just all relative to the rate? I mean the longer you go the higher the rate so the payment isn't that much better, right?

homebroker@sbcgl

2061 Posts

Posted - 12/28/2007 : 8:57:44 PM

Have you seen the Prices in Switzerland, 100 years is just enough to keep your payments below Bill Gates monthly salary.

quote:
Originally posted by andyols

Japan or Switzerland they do for over 70 years, who does in USA?

racerx

11048 Posts

Posted - 12/28/2007 : 8:58:13 PM

quote:
Originally posted by visionmtg

Yeah but isn't long term loans & the payments associated with them just all relative to the rate? I mean the longer you go the higher the rate so the payment isn't that much better, right?

Yes, that's part of the reason I said interest-only is a better option.

Mandyvilla

2702 Posts

Posted - 12/28/2007 : 9:10:24 PM

Okay, I am tired, so I admit I may be missing something here. I ran it first as a 100 year loan, then 50, then 30. I then realized I probably had the rate too high and went back and adjusted accordingly, guessing at the add-on. Not as much difference as one would think. Maybe in the super jumbo.....but for the lower jumbo, not worth it. What loan amount are you looking for out of curiosity?

your input values:

Principal $ 500000
Interest Rate 8.000 %
Amortization Period 100 years
Starting month Jan
Starting year 2008
Results

* Monthly Payment: $ 3334.48

* Avg Monthly Interest: $ 2917.82
* Total Int: $ 3501378.43
* Total Payment: $ 4001378.43

---------------------------------------------

Mortgage Payment Calculator

Your input values:

Principal $ 500000
Interest Rate 8.250 %
Amortization Period 50 years
Starting month Jan
Starting year 2008
Results

* Monthly Payment: $ 3494.79

* Avg Monthly Interest: $ 2661.46
* Total Int: $ 1596874.61
* Total Payment: $ 2096874.61
------------------------------------------

Mortgage Payment Calculator

Your input values:

Principal $ 500000
Interest Rate 6.250 %
Amortization Period 30 years
Starting month Jan
Starting year 2008
Results

* Monthly Payment: $ 3078.59

* Avg Monthly Interest: $ 1689.70
* Total Int: $ 608290.96
* Total Payment: $ 1108290.96
-------------------------------------

rtgage Payment Calculator

Your input values:

Principal $ 500000
Interest Rate 6.750 %
Amortization Period 100 years
Starting month Jan
Starting year 2008
Results

* Monthly Payment: $ 2815.86

* Avg Monthly Interest: $ 2399.19
* Total Int: $ 2879031.98
* Total Payment: $ 3379031.98

andyols

107 Posts

Posted - 12/28/2007 : 9:33:54 PM

Somerset Mortgage? Offer 100yr. Anyone heard that?

andyols

107 Posts

Posted - 12/28/2007 : 9:40:57 PM

I did find a fine article on the web;
If you have been blocked from buying your own home or investment property because you could not qualify for a bank mortgage…The answer is Seller Financing!

Seller financing is perfect for the self employed, small business owner, foreign nationals and people with Really Bad Credit!

Most seller financing programs will provide up to 100 year mortgage terms, fixed or adjustable; or even interest only mortgages for buyers who cannot or don't want to bank qualify!

All the joy of home ownership are yours immediately without; producing bank statements, credit or FICO score requirements, debt ratios, income tax returns or financial statements!

Imagine the pride you will feel announcing to your family, friends and co-workers the great news that you finally bought a house!

See their warm, admiring smiles as you walk them through your new home or investment property. Catch their approving nods and winks!

With seller financing, you will have the option of having all the financial benefits of owning real estate immediately available to you:

* Mortgage interest and real estate Tax write offs. These could reduce your net monthly payment to less than you would pay to rent the property!

* Property appreciation, get rich while you sleep in your new home!

* Equity buildup resulting from the pay-down of the mortgage

* The right to rent out the property for income

* Income-Shielding Depreciation on income property.

Properly structured, seller financing programs can also provide you with bullet-proof asset protection!

The same type Bill Gates, the Rockefellers, Buffetts, etc. and other wealthy owners of real estate use to maintain privacy and to prevent their property from falling prey to creditors, judgments, lawsuits and liens even IRS liens!

How do you locate properties you can purchase with seller financing? You can get started looking for your dream house today!

We suggest that you locate 7-10 properties in your area that you would love to own. They can be sold by Owner, (http://www.fsbo.com/) or are for rent (http://www.rentals.com/). Or check your local newspapers.

Contact the owners of the properties you are interested in. Take a look at the house and if you are interested, find out what the sale price or monthly rental is, then ask the owner one question:

If he could sell it for his full asking price, as long as it is not more than the market price, could he afford to take his equity, if any, in monthly payments?

Equity is the amount of the value of the house that exceeds his mortgage.

For example, if the house is worth $100,000 and he owes $80,000, he would have $20,000 equity. the plan would pay out this amount to him on a monthly payout over several years.

Or if it is a rental, ask him if he would be interested in a long term, 3 year or longer lease purchase, at the end of which the balance of the purchase price would be paid off.

Submit the names, telephone numbers and email addresses of the owners along with details of the property to the Seller Finance Center, http://www.sellerfinancecenter.com/ where it will be distributed to various seller finance sources.

They will verify the information with you and contact the owners of the property and attempt to negotiate a deal to allow you to buy the house with seller financing.

To qualify for seller financing,you must have enough up-front cash to offset the risks of offering you 6 figure financing without the benefit of the stringent safe guards demanded by banks.

You will also have to demonstrate that you are able to carry the financing and the other costs of owning the home. Unlike with banks, there are no set scores or ratios that you will have to meet. Weaker situations, or larger purchase prices will simply require more cash up front.

Seller financing could be the big break you and your family were looking for that will enable you to finally buy that dream home or investment property today!

Copyright 2006 Bill Young. Bill is a former bank mortgage officer and a licensed financial consultant. He is an active real estate investor, author and consultant. His company Metropolitan Business Council, offers a free-5 part Stop Foreclosure program to those facing foreclosure. http://301url.com/StopForeclosures

Article Source: http://EzineArticles.com/?expert=Bill_Young

andyols

107 Posts

Posted - 12/28/2007 : 9:59:37 PM

And U.B.S offers on 2.33% on portfolio program:
If you are looking for a mortgage in line with market
conditions that you can take out and simply forget about,
then the UBS Portfolio Mortgage, a unique product in
the Swiss mortgage market, is the ideal solution for you.
The interest rate is variable, and yet you are protected
from strong fluctuations in interest rates.

andyols

107 Posts

Posted - 12/28/2007 : 10:02:56 PM

Can you shop out the borders for the portfolio program the U.B.S offer loans on 2.33% on portfolio program in Switzerland?

quote:
Originally posted by Mandyvilla

Okay, I am tired, so I admit I may be missing something here. I ran it first as a 100 year loan, then 50, then 30. I then realized I probably had the rate too high and went back and adjusted accordingly, guessing at the add-on. Not as much difference as one would think. Maybe in the super jumbo.....but for the lower jumbo, not worth it. What loan amount are you looking for out of curiosity?

your input values:

Principal $ 500000
Interest Rate 8.000 %
Amortization Period 100 years
Starting month Jan
Starting year 2008
Results

* Monthly Payment: $ 3334.48

* Avg Monthly Interest: $ 2917.82
* Total Int: $ 3501378.43
* Total Payment: $ 4001378.43

---------------------------------------------

Mortgage Payment Calculator

Your input values:

Principal $ 500000
Interest Rate 8.250 %
Amortization Period 50 years
Starting month Jan
Starting year 2008
Results

* Monthly Payment: $ 3494.79

* Avg Monthly Interest: $ 2661.46
* Total Int: $ 1596874.61
* Total Payment: $ 2096874.61
------------------------------------------

Mortgage Payment Calculator

Your input values:

Principal $ 500000
Interest Rate 6.250 %
Amortization Period 30 years
Starting month Jan
Starting year 2008
Results

* Monthly Payment: $ 3078.59

* Avg Monthly Interest: $ 1689.70
* Total Int: $ 608290.96
* Total Payment: $ 1108290.96
-------------------------------------

rtgage Payment Calculator

Your input values:

Principal $ 500000
Interest Rate 6.750 %
Amortization Period 100 years
Starting month Jan
Starting year 2008
Results

* Monthly Payment: $ 2815.86

* Avg Monthly Interest: $ 2399.19
* Total Int: $ 2879031.98
* Total Payment: $ 3379031.98

andyols

107 Posts

Posted - 01/02/2008 : 3:09:03 PM

Need private lender to do that?

andyols

107 Posts

Posted - 01/09/2008 : 11:09:55 AM

Lender who can do 50 year amtz. with 651 fico SISA?

AGreene00

2734 Posts

Posted - 01/09/2008 : 11:16:23 AM

quote:
Originally posted by Mandyvilla

Okay, I am tired, so I admit I may be missing something here. I ran it first as a 100 year loan, then 50, then 30. I then realized I probably had the rate too high and went back and adjusted accordingly, guessing at the add-on. Not as much difference as one would think. Maybe in the super jumbo.....but for the lower jumbo, not worth it. What loan amount are you looking for out of curiosity?

Yeah, it doesn't actually lower the monthly payment by much at all. Once you've stretched it out for 600 payments it doesn't get much lower by stretching it out for 900 or 1200.

andyols

107 Posts

Posted - 01/10/2008 : 8:07:56 PM

$780,000

andyols

107 Posts

Posted - 01/24/2008 : 6:34:33 PM

One or three year baloon over 100 year amortization 70% LTV full doc on 3.62% in Switzerland, that is only possible if you have low steady interest rate.

Quicksilver

4458 Posts

Posted - 01/24/2008 : 6:39:25 PM

I don't get it, are you asking questions or talking to somebody????

andyols

107 Posts

Posted - 01/24/2008 : 6:43:53 PM

I'm answering to one guy emails, also I'm looking for the lender or new programs.

Quicksilver

4458 Posts

Posted - 01/24/2008 : 6:51:16 PM

If your looking for a U.S. lender offering 100 year amm, your pry sol.

andyols

107 Posts

Posted - 01/24/2008 : 7:01:07 PM

100 years is better option than I.O. just need to find Investor/Lender to see it.

Quicksilver

4458 Posts

Posted - 01/24/2008 : 7:26:52 PM

Your not going to find a bank/investor doing 100 year amortization in the U.S, plus I even if it were possible I don't see how it would be better then interest only for the example Mandy exactly posted. 40 yr has hits to rates, when 50 was available even bigger hit, think of the hits 100 years would have.....even on a 40 yr in this market the pricing is either similar or barely higher/lower then an interest only as I priced a couple out recently.

Boulderco

1059 Posts

Posted - 01/24/2008 : 7:45:04 PM

Once you go out beyond 50 years (40 years for that matter) the payment just doesn't go down that much. $75.43 on a $300,000 loan at 6%, and stretching the loan out that long if it could be done would probably have such a hit to rate as to make it pointless.

andyols

107 Posts

Posted - 01/24/2008 : 7:53:49 PM

With that index's what we have currently on market dosn't make a sense, but for the seller does.

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