From: "Jeff Strickland" 
Newsgroups: alt.org.natl-assn-mortgage-brokers
Subject: Re: 40 and 50 year mortgages? A few questions if anyone can answer....
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Date: Thu, 07 Jun 2007 01:35:38 GMT


"SPORTSVIDS"  wrote in message 
news:wP6dnfQwN4DMw_rbnZ2dnUVZ_hSdnZ2d@comcast.com...
> We are a married couple... both 45 years old, with mortgage questions....
> What are the pluses and minuses to consider regarding 40 or 50 year notes 
> versus conventional 30??
> Isn't it good to have the interest deduction for as long as possible, even 
> though it means (possibly) not ever paying off the note?
>

Yes, it is true that you might enjoy the interest deduction.

Assuming it is true, why not get a 30-yr fixed with the first 10 being 
Interest Only, then doing a refi in 10 years to the same kind of note. When 
you get to be 65 and have no income to speak of, sell the property and take 
the equity, and move to Montana where you can buy a house for cash and enjoy 
a reasonably low property tax rate.

On a 40- or 50-yr note, you are not going to make much of a dent in the 
principle reduction anyhow. Pay 10 years on an interest only note, then refi 
the same Remaining Balance to another 30-yr fixed with the first 10 as 
Interest Only. By this time, your LTV should be below 65%, and ten years 
later it should be below 50%. After 20 years, sell the dump and take half 
the proceeds to another house that is smaller and demands less of your 
efforts, and pay cash for it.