50 Year Mortgage

[TerryRohrer]

Here is a new wrinkle that you may have to deal with in the future I never heard of this but apparently has been discussed in the lending community

A portable mortgage lets you transfer your existing mortgage to a new home, keeping your current interest rate and terms.


This concept is gaining attention as a way to make homeownership more flexible and affordable, especially in a high-interest-rate environment. Here's how it works and why it's generating buzz:

What Is a Portable Mortgage?​

• Definition: A portable mortgage allows homeowners to transfer their existing mortgage—including the interest rate and terms—from one property to another when they move Smart Capital Mind GLM Mortgage Group.
• Key Feature: Instead of breaking your mortgage and facing penalties or higher rates, you can carry it over to your next home.

Why It’s Useful​

• Avoids Penalties: You don’t have to pay prepayment penalties for ending your mortgage early.
• Preserves Low Rates: If you locked in a low interest rate, you can keep it even if rates have risen.
• Simplifies Moving: Makes it easier to upgrade or downsize without renegotiating a new mortgage.

Current Developments​

• The Trump administration is actively evaluating portable mortgages as part of broader efforts to improve housing affordability Newsweek Yahoo Finance.
• This idea is being considered alongside other proposals like 50-year mortgages and assumable loans, which also aim to ease financial burdens for buyers Mortgage Research Center.

Considerations​

• Not all lenders offer portable mortgages.
• There may be restrictions on the type of property you can transfer the mortgage to.
• You’ll still need to qualify for the new home purchase under your lender’s criteria.

Would you like help comparing portable mortgages to other options like assumable loans or fixed-rate mortgages? I can break down the pros and cons.

The more government "fixes", the more things get broken. Imagine an outfit that can't stop mailing checks to dead people. Now you can understand how your great, great, great grand kids might be paying off your mortgage someday, if they want to. Clearly, there is no drought on stupid ideas, all offered in an effort to ensure that the public in general never wakes up and understands that all the past problems are simply being delayed for future generations. These ideas are not needed to solve an existing problem, they are intended to mask existing problems that are symptoms of past and present meddling fundamentally directed at social engineering.

 

[ucbruin]

During my lifetime....
Every time I received mail....
I was impressed by how successful the postal system ran....
Considering the number of pieces of mail and size of the country....

 

[TerryRohrer]

When wearing rose colored glasses, proponents of more government always count the benefits, but not the costs.

"To preserve cash, the agency has skipped making billions of dollars in payments into its retirees’ pensions and health benefits fund. Nonetheless, the USPS will burn through that money in the next few years."

The US Postal Service Is Going Broke

The US Postal Service (USPS) recently reported its third quarter financials, tallying a loss of $3.1 billion. That is 21 percent higher than the agency’s shortfall during the same period last year and the latest sign of...

www.aei.org

 

[John Hassler]

When trump made the comment about 50 year mtg that was taken out of context

I got sidetracked

I see below has already been discussed so I will leave it up.


Here is a new wrinkle that you may have to deal with in the future I never heard of this but apparently has been discussed in the lending community

A portable mortgage lets you transfer your existing mortgage to a new home, keeping your current interest rate and terms.


This concept is gaining attention as a way to make homeownership more flexible and affordable, especially in a high-interest-rate environment. Here's how it works and why it's generating buzz:

What Is a Portable Mortgage?​

• Definition: A portable mortgage allows homeowners to transfer their existing mortgage—including the interest rate and terms—from one property to another when they move Smart Capital Mind GLM Mortgage Group.
• Key Feature: Instead of breaking your mortgage and facing penalties or higher rates, you can carry it over to your next home.

Why It’s Useful​

• Avoids Penalties: You don’t have to pay prepayment penalties for ending your mortgage early.
• Preserves Low Rates: If you locked in a low interest rate, you can keep it even if rates have risen.
• Simplifies Moving: Makes it easier to upgrade or downsize without renegotiating a new mortgage.

Current Developments​

• The Trump administration is actively evaluating portable mortgages as part of broader efforts to improve housing affordability Newsweek Yahoo Finance.
• This idea is being considered alongside other proposals like 50-year mortgages and assumable loans, which also aim to ease financial burdens for buyers Mortgage Research Center.

Considerations​

• Not all lenders offer portable mortgages.
• There may be restrictions on the type of property you can transfer the mortgage to.
• You’ll still need to qualify for the new home purchase under your lender’s criteria.

Would you like help comparing portable mortgages to other options like assumable loans or fixed-rate mortgages? I can break down the pros and cons.

Expect to pay a higher rate and/or fees for a portable loan as it’s all downside risk for the lender.

That said, sure, go ahead and offer it and see how borrowers, lenders, and secondary market participants react.

 

[shrubberyvaluation]

Yeah. More than a few people assumed mortgages with little/nothing down and collected rent until the loan defaulted.

With no credit check and no money down I have a feeling that will happen much more often.

 

[Carnivore]

I actually think they may not be considering that this affordable housing issue is more about supply and incomes have not kept pace . In my city they has been taking existing lot's and making two buildable sites out of one. I recall also we had NC Bond money which has lower interest rate for 1st time homebuyers, Again this was by the state.


Again I just have not read all the post

 

[Fernando]

Don't disagree. The biggest risks associated with assumptions, as I see it are: (1) it will lengthen the loan term - which could possibly create additional credit risk for the GSE's (as if they don't have enough already), and (2) the potential that the borrower's credit profile won't match well with the terms of the initial mortgage. I know FHA, specifically, dealt with a lot of fraud back in the day regarding the 2nd issue.

There is an increase in borrowers underwater in their mortgages. Most are with FHA loans. Poor people shouldn't be getting loans which they can't get in normal capitalist market.

 

[alebrewer]

There is an increase in borrowers underwater in their mortgages. Most are with FHA loans. Poor people shouldn't be getting loans which they can't get in normal capitalist market.

We've not had a 'normal capitalist market' in the US in almost a hundred years, Fern.

 

[Fernando]

We've not had a 'normal capitalist market' in the US in almost a hundred years, Fern.

Back then larger down payments and no need for appraisals.
Now more government loans artificially lifting housing prices so more can afford to buy. Not fair to those who saved for large down payment and compete with those with little skin in the game.

 

[alebrewer]

Back then larger down payments and no need for appraisals.
Now more government loans artificially lifting housing prices so more can afford to buy. Not fair to those who saved for large down payment and compete with those with little skin in the game.

Life isn't fair, Fern. Just ask J.