Cape Coral Florida Real Estate Deals

US based real estate owners are used to 30 year
fixed rate mortgages.

Whereas Canadian real estate owners are lucky
if they lock into a 7 yr fixed rate mortgage.

In the past 8 months, two new mortgage terms
have been unveiled. The 40 yr and 50 yr mortgage.

But will these trigger more foreclosures on real estate?
Likely not.

However, is it wise for real estate buyers to use them?

Consumer Warrior Clark Howard doesn't think so.
Read on for his comments below...

“Foreclosures in Boston are up 30 percent in the past
90 days and have doubled in the past two years, according
to The Boston Globe.

Part of the reason is that people are taking out risky loans.

One of them is the 40-year mortgage, which now accounts
for one in 20 home loans in the country. What’s worse?
There is now a 50-year mortgage out there.

Why are these bad news?

A higher interest rate because the risk is higher and
massive amounts of additional interest in return for a
tiny drop in payment.

The truth of homeownership is cold. If you can’t afford
the payment on a 30-year fixed rate loan, you should buy
less house. Be smart.”