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Banks will start offering a 40 year mortgage. Just you wait.

• poulsbohemian 4y ago
  yes, plus there's already talk about "Australian" mortgages (also known as an "all-in-one") plus you'll see the return of ARMs, and I'm already advising my sellers to consider carrying contracts themselves where possible. Point being, the market adjusts to conditions.
  • kgc 4y ago
    What does carrying a contract entail for a seller?
    • poulsbohemian 4y ago
      Let’s say you have reasons to sell your property, but you don’t need all the money right this minute. Maybe interest rates are at like 6.5%, but you’d be willing to carry the contract for 5%. Everybody wins - the buyer gets a better deal than they would get from a traditional lender, they get the house they want, the seller gets the house sold and gets paid out with a rate of return that makes it worthwhile for them. When rates are low, it doesn’t make any sense apart from land contracts (which is a separate discussion) but as rates go up it can be a good solution for everyone. Maybe you won’t see this in urban markets, but in rural markets it is not uncommon - I did several in the last year and when I talk to other agents in similar markets they report the same. My point is - lending trends tend to change in order to keep business flowing.
  • parkingrift 4y ago
    I've also seen more interest only loans lately.