CA Housing Finance Agency offers 40-year mortgages to 1st time buyers

[Bush_Eats_Beef]

State offering 40-year mortgages for first-time homebuyers
Silicon Valley/San Jose Business Journal - 1:29 PM PST Wednesday

http://www.bizjournals.com/sanjose/stories/2006/03/13/daily32.html?f=et79&hbx=e_du

A state agency that helps first-time homebuyers announced Wednesday the introduction of a 40-year fixed mortgage. The California Housing Finance Agency already offers 30-year fixed and 35-year interest only mortgages. All three mortgage options are offered at below market, fixed interest rates.

Last year, CalHFA expanded its mortgage products by introducing the interest-only loans, which now comprise more than a third of all the agency's loans. "The response to our expanded product offering has been tremendous," said Theresa Parker, the agency's executive director, in a news release. "While the 40-year mortgage may not be right for everyone, it does offer first-time homebuyers another way to help achieve their goal of homeownership."

The fixed rate on the 40-year mortgage will initially be 5.75 percent, about one point below average market rates for 40-year mortgages. Loans from CalHFA are available to low- and moderate-income first-time homebuyers who meet CalHFA income limits and who are buying homes that fall at or below CalHFA sales price limits, which are pegged to home prices in each region.

[fed-up]

1. So much for having one's house paid off by retirement age-refinancing also

leaves people paying mortgages well into their 70s and 80s.

Unless they sell and buy cheaper when they quit working.

The banks are making a killing on increased house prices and financing.