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
There are 40+ mortgages, the maturity date is up to your bank to negotiate. It’s up to the banks to decide if they want to allow for long term mortgage.
If they are now starting to shorten the maturity periods, it likely due to it being preferable to give you 30 years and allowing for refinancing once close to the maturity dates.
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