Watch CBSN Live

Lenders Offering 50-Year Mortgages

Despite a cooling real estate market in many parts of the country, home prices are still through the roof and, with interest rates continuing to rise, lenders are looking for ways to make home buying possible.

Some have started to offer 50-year mortgages to those struggling to afford a home.

It gives home buyers the option to spread out and lower their payments.

Most lenders already supplement traditional 30-year loans with 40-year mortgages, and the 50-year option takes it a step further.

But some experts caution that the 50-year mortgage can be risky, since it'll take longer to build equity and, with an interest rate that starts getting adjusted after the first five years, payments could go up. Still, they add, this might be a good way to go for people who don't plan to stay in their holme more than five years.

Vera Gibbons of Kiplinger's Personal Finance magazine sorted it all out on The Early Show Thursday.

To watch the segment, click here.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.