50 year Mortgage hits the market

C

Clarkej

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http://money.cnn.com/2006/05/10/news/economy/economy_mortgage/index.htm?cnn=yes

I know it's in the states but maybe we'll have it here soon.

Get married at 18, 1st kid at 19, 50 year mortgage at 20.
If the government change the retiremennt age up to 70 and you get your 1st child to go as guarantor on the mortage you might be able to fit it all in, otherwise you will have to go for a Mortgage over multiple generations.

Do you think we'll ever have the 50 year mortgage or mortgages over multiple generations in Ireland ?
 
I think irish people are far more intelligent than that and will simply abandon the country once again,with the best and brighest going first.
 
Ahh.... the fifty year the Methuselah of mortgages, the holy grail of the banking ahem.. industry, perpetual debt.
 
thewatcher said:
I think irish people are far more intelligent than that and will simply abandon the country once again,with the best and brighest going first.
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do you really think so :rolleyes:
 
Just because somebody takes out a, say, 50 year mortgage does not necessarily mean that the mortgage will run full term especially if the borrower accelerates the repayments if/when they are in a position to do so. Wonder what the mortgage protection life assurance premiums on a 50 year term would be though? Aren't long term (lifetime?) mortgages common in other jurisdictions (e.g. German Pfandbrief (?) mortgages?)?
 
X-Man said:
do you really think so :rolleyes:
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I do,i'm not saying were going to have mass emigration now or anything.
But the rite of passage of many college students has always been a spell in America,Australia and Europe.The standard of living in these places is far better than ireland at present,and i can certainly see people seriously thinking about coming back to a way overpriced house in the suburbs. What's the point in earning good money,if it's all taken up in mortgage payments ?
 
thewatcher said:
I do,i'm not saying were going to have mass emigration now or anything.
But the rite of passage of many college students has always been a spell in America,Australia and Europe.The standard of living in these places is far better than ireland at present,and i can certainly see people seriously thinking about coming back to a way overpriced house in the suburbs. What's the point in earning good money,if it's all taken up in mortgage payments ?
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But the original point was that 50 year mortgages have arrived in the US and are not yet here so why would people leave Ireland to go somewhere that does have 50 year mortgages? :confused:
 
I heard on the radio this morning that the average lifetime of a mortgage is 21 years.The FTB that takes out 35 or 40 year mortgages is likely to Refinance after a few years and reduce the term of the mortgage. That is, if their financial situation has improved over these first few years
 
thewatcher said:
What's the point in earning good money,if it's all taken up in mortgage payments ?
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People used to say exactly this in the 80's, except then they were referring to high taxes.
 
I heard on the radio this morning that the average lifetime of a mortgage is 21 years.
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That's a worrying statistic - it means that of the people taking out 20/25yr mortgages (as was the norm until recently) very few have managed to repay them early - maybe we are'nt as equity rich as previously thought.
The FTB that takes out 35 or 40 year mortgages is likely to Refinance after a few years and reduce the term of the mortgage. That is, if their financial situation has improved over these first few years
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That's the theory peddled by the banks/brokers etc - since these mortgages have not been available for more than 3/4 years? It is'nt possible to tell yet what will happen. We may even see a new phenomennon: 'the remortgage to a longer term' as interest rates rise, and incomes struggle to keep pace with 'lifestyle' costs people may have to further increase terms??
 
ClubMan said:
But the original point was that 50 year mortgages have arrived in the US and are not yet here so why would people leave Ireland to go somewhere that does have 50 year mortgages? :confused:
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http://money.cnn.com/2006/05/10/news/economy/economy_mortgage/index.htm?cnn=yes

"The report of the new 50-year loan comes as the signs mount that the nation's real estate market is cooling."

220 applications,handful of lenders...in a country of how many million people.It's a gimmick nothing else,overhere it's gone so mad something like that could acually take hold :eek: .

I wonder how they'll spin it here !
 
Howitzer said:
People used to say exactly this in the 80's, except then they were referring to high taxes.
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It seems that the only people who paid tax in this country in the 80's were the paye workers !...........generalisation of course :D
 
According to the conventional wisdom in Ireland you're always better off buying rather than renting. So as long as our banks can structure manageable monthly payment schedules, the price, interest rate, terms etc. are all irrelevant. 50yr mortgages are just a natural extension of this philosophy and are only a matter of time.
 
GoldDigga said:
I heard on the radio this morning that the average lifetime of a mortgage is 21 years.The FTB that takes out 35 or 40 year mortgages is likely to Refinance after a few years and reduce the term of the mortgage. That is, if their financial situation has improved over these first few years
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The only way this can happen is if wages increase significantly,does anyone think this is going to happen ?

We have been overpaying ourselves for the last few years compared to all our neighbours,we are becoming more and more uncompetitive this cannot continue !
 
Are you sure about that? I am a software engineer and earn a lot less than I could if I moved to the US (which I don't want to do). Employing me represents good value (both in terms of cost and productivity) to my US based employer especially in comparison to the staff that they employ over there.
 
ClubMan said:
Are you sure about that? I am a software engineer and earn a lot less than I could if I moved to the US (which I don't want to do). Employing me represents good value (both in terms of cost and productivity) to my US based employer especially in comparison to the staff that they employ over there.
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I don't know about that CM, can you back it up with hard facts? ;)
 
According to The National Adult Literacy Agency, Ireland lags behind its competitors in terms of financial literacy.

[broken link removed]
 
The NALA itself is illiterate judging by that article! Just look at the dodgy punctuation... :(
Ireland's first ever national independent research into the issue of financial literacy, today revealed that the problem of low financial literacy is not confined to those with literacy and numeracy difficulties, but exists in all income levels.

...

... found that over a third of adults from a sample population in Ireland (1000+), could not recognise the correct definition for the financial term 'APR'.

...

Furthermore, over half of middle-income level respondents, selected the incorrect explanation of the term.
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ClubMan said:
Are you sure about that? I am a software engineer and earn a lot less than I could if I moved to the US (which I don't want to do).
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Would you not even consider it clubman you could have a beautiful day like today in Florida or California in the middle of winter?
 
ClubMan said:
The NALA itself is illiterate judging by that article! Just look at the dodgy punctuation... :(
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Ahhh... you forget Clubman. The NALA are representative of the public, and reflect this in their deliberate use of dodgy punctuation.

The staggering fact in the NALA report, is that over 50% of middle income respondents were ignorant of the correct definition of APR. :eek:
 
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