The Program:
    
A. Principal Amounts Offered - $100,000 to $5,000,000. This program is usually offered to both "Conforming" and "Jumbo" size loans so just about any consumer's loan can be considered.
    
B. Interest Rate Options - This is a new Loan Program that is not yet available in all areas. Only a few lenders, mostly in California, are offering the 50 Year Loan and the terms are not yet uniform. In the "Fixed" Interest Rate 50 Year Program, the borrower pays both interest and principal each month. Because the term of the loan is 50 years instead of the more normal 30 or 40 year term, the monthly payment is lower. As example, the monthly payment on a $100,000 loan with a "Fixed" interest rate of 6% for 30 years is $599. The monthly payment for that same loan using a 40 year loan is $550 and using the new 50 year loan is $526 per month. This $526 is both principal and interest which is a difference of $73 per month vs. the 30 year loan term. Remember, however, that the longer term of 50 years means that the borrower is going to be paying much more interest on the loan since the term is 20 years longer than the 30 year loan term. Why would borrowers want to consider this extended term then? If you expect to stay in the home for only a short period of time, 1 to 3 years, then using the 50 year loan would allow you to carry the home with lower payments including building your equity at a very slow pace as the monthly payment does include principal as well as interest. Or, if you expect to re-finance the loan at a later date, this extended period loan would allow you to make the lowest payment while you wait to re-finance. The actual difference between the 30 year and 50 year loan monthly payment is 12% which works out to about $ 876 per year per $100,000.
    
C. Term - This mortgage is offered as a 50 year loan with the monthly payment amortized over a 50 year period. This lowers the monthly payment, but of course increases the total amount of interest paid over the life of the loan since you will be paying interest for 50 years instead of 30 years.
    
D. Consumer Credit Scores - This program can usually be applied to Consumer's with Excellent down to Poor credit with adjustments of the interest rate for lower credit scores.
    
E. Points - Sometimes, this program will allow the consumer to pay "points" up front at closing to get the interest rate even lower than is offered. Each point would represent 1% of the loan amount so that a Consumer who wants to borrow $100,000 would paid $1,000, or 1 point, up front to get the interest rate lowered. How much lower is a function of the current market conditions. Some offer a rule of thumb of 1 point =.25% lower rate.
    
F. Closing Costs - This program usually has the same closing cost as regular mortgage loans. Sometimes you can add the closing cost to the Principal Amount of the Loan so that you do not have to expend funds out of pocket at closing.
    
G. Sample Monthly Payments - Because this Mortgage Program extends the term of the loan, the monthly payments are lower than the 30 year loan. This would benefit borrowers who need the lower monthly expense now with the possibility of being able to handle a higher monthly payment down the road, or borrowers who only expect to stay in the home for 1, 2 or 3 years and want the lowest monthly cost during that period of time. Another benefit of the 50 Year Program is that the borrower can elect either a "Fixed" or "Adjustable" Interest Rate. And, if the "Adjustable" Rate Loan Program is selected, can chose any one of four different monthly payments he or she wishes to pay. The smallest payment is know as the MINIMUM Monthly Payment and is smaller than an Interest Only payment. However, it may add pricipal to the balance of the mortgage which is know as Negative Amoritization. Then there is the INTEREST ONLY monthly payment which does not require a Principal payment. Next the borrower can make a regular Interest and Principal monthly payment or lastly can make a larger Principal monthly payment to reduce the outstanding Principal due on the loan faster than the 50 year term. The borrower has the option each month to make which ever of the 4 monthly payments he or she wishes to. And can change the monthly payment each month if desired. So you can see that the 50 Year Loan Program has a lot of options so the borrower can manage his or her monthly payments as their economic situation varies. But please remember, this 50 year program is not available in all locations so the descriptions above are what some of the lenders who are working with this 50 year program are describing as the options they will make available on a case by case basis. Please visit 40 Year "Option" Adjustable Rate Mortgage Program    Here are samples of the 30 year monthly payment vs. the 50 year monthly payment:
     

    
H. Comparing the 50 Year Mortgage to 30 Year Fixed and Adjustable Mortgage Loans - We are using "SAMPLE" interest rate in this comparison, which are NOT current interest rates, only examples of how the 50 year would compare in payments to other mortgages.
      

    
Here is a breakdown of the principal amounts you will owe at the end of 1,2,3,4,5,10 and 20 years so you can determine if the 50 year is the right mortgage option for your particular situation.
     

    

    
For more information about the new 50 Year Mortgage Loan, please e-mail : 50Year@Mortgage2USA.com 
    
Note: All information and data on this page and this web site has been obtained from dependable and recognized sources which we believe to be reliable. However, no data has been directly verified by us and cannot be guaranteed for accuracy or completeness. Every effort has been make to avoid errors. This information is for informational purposes only and cannot be construed as an offer to buy or sell any securities or mortgages. United States Holding Corporation is not a Mortgage Company or Broker and only refers visitors to this site to mortgage professionals. All data is subject to change and availability and current interest rates always vary on a daily and sometimes hourly basis.