50-year mortgages? Ho-lee-moley. Only in California.
I can see the value of getting one of these and then refinancing a few years later when your earning power increases. But if it doesn’t increase enough then this kind of loan can be a big gamble. Kind of like ARMs!
With real estate as expensive as it is in California, this is probably the best chance a lot of buyers will have at owning a home here. And more options for buyers beyond the boring “30-year fixed” mentality is always good for the market, I think.
Listen to me! I sound like I know what I’m talking about! I might not, though!