Why 50-year mortgages are a ‘Stupid Investment’
Take the worst problems of one stupid investment and mix it with the biggest concerns of another and you wind up with a Stupid Investment of the Week to the second power.
And that’s precisely what you will get if you fall for a 50-year mortgage, a relatively new product that is starting to make in-roads in the mortgage market, particularly in hot real estate markets like California.
Stupid Investment of the Week highlights the problems that make an investment less than ideal for the average consumer, in the hope that pointing out trouble spots in one situation will make them easier to find elsewhere. While obviously not a purchase recommendation, neither is this column meant to be an automatic sell signal, as there are times when getting out of a worrisome situation simply compounds the problem.