Car loans have gone from 48 month payment terms to 60 months, to 72, even 120 months. Why are mortgages typically for 30 years? Do people really pay 30 years without moving to pay off the notes? Since housing prices are going up and wages aren’t keeping up, why aren’t there 40 or 50+ year mortgage repayment options to make payments more affordable? Thank you!
In: Economics
Mortgages are fairly standardized so they can be bundled and bought/sold easily by investors. Those are the time frames that seem to work best and thus were chosen as standard confirming mortgaged the government would back.
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