35-Year Mortgage In California

Contributed by mm | October 9, 2006 1:07 AM PST

Yes, well said, "lenders and government agencies will do whatever it takes to spur the housing market." And now the marketing is crashing.

From RE Times:

A new 35-year mortgage will cost you tens of thousands of dollars more in interest than a conventional 30-year mortgage over the life of the loans, but the special loan is packed with enough attractive provisions to offset that drawback.

Beginning with nothing down, five years of interest-only payments and a low fixed interest rate of 5.25 percent (as of this printing) that doesn't change for the life of the loan, the mortgage could be a Godsend for those who otherwise couldn't qualify for a mortgage, want a larger home, or seek a better home-buying location where homes cost more.

"It's continuing evidence that lenders and government agencies will do whatever it takes to spur the housing market and allow more people to become home buyers and help the economy," said Rick Pelleriti, a mortgage planner with Lawson & Associates in Campbell, CA just hours after an industry orientation meeting to discuss the new program.

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