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Re: 30 year mortgage
Old 07-20-2005, 06:35 PM   #21
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Re: 30 year mortgage

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Originally Posted by Patrick
Hey, I just thought of a great plan: get the longest possible mortgage term right before you retire, then if you die first you don't have to pay it off and have lived in a great house!
I think 40-year mortgages are available in some (limited) U.S. areas. I've heard that Japan was experimenting with longer terms but the '90s crash may have killed that.

We just keep refinancing ours. At this rate it won't be paid off until I'm almost 75.
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Re: 30 year mortgage
Old 07-20-2005, 07:16 PM   #22
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Re: 30 year mortgage

If I remember correctly: About 25 years ago I read a little article about 100 year mortgages in Japan. It was during their RE boom when the Imperial Gardens/Emperor's Home was estimated to be worth more than all of California.

They mentioned in the article that a 100 year mortgage was about meaningless, with only a few yen a month saved over a 40 year mortgage. But it was the only way some people could afford a condo at that time. I think they required adult children to co-sign with elderly parents. I remember 1,000,0000 yen as one specific price, which translated to $100,000 for a small apartment. I was appalled at the price then. Now I know better.
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Re: 30 year mortgage
Old 07-20-2005, 08:12 PM   #23
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Re: 30 year mortgage

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Originally Posted by Patrick
Is Jimmy still alive?* He sure makes good sausages.* :P
"Mo' Dean was pretty cool (dating myself here).

I read a Jimmy Dean interview recently so I assume he is still alive.
Interesting guy.

JG
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Re: 30 year mortgage
Old 07-20-2005, 08:33 PM   #24
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Re: 30 year mortgage

Patrick writes:
Quote:
Hey, I just thought of a great plan: get the longest possible mortgage term right before you retire, then if you die first you don't have to pay it off and have lived in a great house!
A co-worker of mine argues quite seriously that it is crazy to make accelerated mortgage payments for the very reason that one might get "lucky" and die before paying it all off.

Quote:
If I remember correctly: About 25 years ago I read a little article about 100 year mortgages in Japan.
The longest term I have seen recently is 35 years.

Quote:
I remember 1,000,0000 yen as one specific price, which translated to $100,000 for a small apartment. I was appalled at the price then. Now I know better.
$100,000 (10,000,000 yen) would be unattainably cheap for an apartment now. At the peak of the bubble that was probably more like $1,000,000, at least around Tokyo. Out here in the semi-boonies, a 2-3 bedroom apartment would run around $300,000-$400,000 -- nearly as much as a free-standing house.

(I'm talking new construction here; used is much cheaper.)

Bpp
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Re: 30 year mortgage
Old 07-21-2005, 08:15 AM   #25
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Re: 30 year mortgage

Hello again and thanks for the input. The reason I am building is wife is only 45 and would like to live out a little farther in the country. My house is paid for and just sold for 110,000 after cost that 100,000 will go directly in the house. The 2 acres is paid for and if I run into a financial problem I can split it and sell an acre for around 50 to 60 thousand.
Her house should draw some equality maybe 10 to 20 thousand. So for starters the loan will be for around 100,000. The size of the new house is around 1800 square feet so it is not a hugh house. Cost was estimated at 200,000. We contracted it out to a well-known builder from a small country town where he has built many homes and hasnít been run out of the county. We can trust him.

Anyway that is the reason we are building. Also with still working and is use to making about the same house payment. In this case I am retired and will be making the house payments out of what I pull from my retirement savings. She will cover the rest of the expenses. She has a stable job as a diabetic educator (nurse). I am 56 and retired last year. I do plan on seeking a new career in real estate after the house is built.
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Re: 30 year mortgage
Old 07-21-2005, 08:23 AM   #26
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Re: 30 year mortgage

We live in a 100 plus year old building with great character and lovely wood work that would be impossible to replicate today. Nevertheless, sometimes new sounds great. Our heating bills are outrageous. There always is maintenance to be done. And any remodeling efforts are expensive because you are trying to fit new into old.

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