Oh yes... I do agree with that.  There are some people who will be able to get their first home sooner, or easier.  More low income home buyers will be able to qualify.  I guess that is a good thing.  However, I have a feeling that the 50 year mortgages will be used much more by people who want a home a little larger than they can really afford.  Afterall, when you are looking at a low income home buyer, they difference in their payment on $100,000 is not really all that much.  However, that couple that really wants to move up to that $500,000 home will notice a larger difference in their payment.

I think this is a tool that invites people to get over extended.  I'm not saying that there won't be some good uses of the 50 year mortgage - but I think the majority will be the result of those who have grown accustomed to living beyond their means.

Best,
Robert A. Franco
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