Page 1 of 2 12 LastLast
Results 1 to 20 of 37

Thread: Contest: Who will offer the Afterlife Mortgage first?

Hybrid View

  1. #1
    Join Date
    Jun 2006
    Location
    US, Europe and Asia
    Posts
    4,592

    Default Contest: Who will offer the Afterlife Mortgage first?

    Giving away gold coins in these contests is getting expensive. No big deal in the old days when gold was trading at $270. But with the world's central banks, led by the Fed, playing Race to the Bottom with the world's major currencies, these English Sovereigns ain't cheap anymore. They were $80 when we started, now $180.

    With the housing market crashing on schedule and in line with our Jan. 2005 forecast, it's time to challenge the iTulip crew–in our opinion the smartest finance and economics community on the whole Web–to tell us: Which bank or lender will be the first to offer a 100 Year Mortgage?

    The 50 Year Mortgage debuted April 2006. As Holden Lewis at Bankrate.com reported then:
    Half of first-time home buyers are 32 or older, according to the National Association of Realtors. If those buyers get 50-year mortgages and never refinance or make extra payments, they won't pay off their loans until they're well into their 80s. Would they be crazy to get loans that amortize or pay off the balance over 50 years instead of the standard 30 years? Not at all, Diaz says.

    "Getting a 50-year loan is a perfectly rational way to avoid an interest-only or payment-option adjustable-rate mortgage," he says.
    Perfectly rational. Let's take "rational" to the extreme. If you have to choose between defaulting on your mortgage and giving up your home or extending your mortgage out to 1200 affordable monthly payments, which are going to do? Why the perfectly rational thing, of course!

    As the dollar sinks and long term interest rates rise to price in inflation and, dare we say, default risk, homes become even less affordable on a monthly basis as mortgage rates rise.

    Remember, the Monthly Payment Consumer debt serf couldn't care less about the total price of anything, only the monthly cost.

    When long term interest rates, such as on 10 year treasury bonds, rise to 10%, the monthly payment on a 30 year fixed rate mortgage will be out of reach for Joe Home "Owner" when he tries to switch out of a balooning adjustable rate mortgage and into a nice, stable fixed rate mortgage. It won't help him one bit if the price of his home falls 30% from the time he bought the home with a 3.4% teaser rate with an ARM–he'll still be stuck refinancing the old, underwater mortgage.

    The Japanese style 100 Year Mortgage is just the thing to bring the monthly payment on "his" home into range, and keep him paying until he's rotting in his grave.

    Forget a lifetime of debt. Soon millions will enjoy an afterlife of debt. Call it the Afterlife Mortgage.

    Each registered iTulip member gets to post the name of one bank or lender they believe is most likely to be first to offer the 100 Year Mortgage. If the bank you choose gets acquired, then your guess transfers to the acquiring bank or Resolution Trust Taxpayer Bail-Out Company or whatever. In case of a tie, the first poster to post the winning name wins. This thread closes to posts in one week. Good luck!

    (Sorry, iTulip employees, contractors, writers, sponsors, and affiliates are not eligible to play.)
    Last edited by FRED; 10-19-07 at 05:35 PM.
    Ed.

  2. #2
    Join Date
    Nov 2006
    Posts
    2,313

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Bank of America.

  3. #3

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Washington Mutual

  4. #4
    jimmygu3's Avatar
    jimmygu3 is offline iTulip Ambassador, iTulip Select Premium Member
    Join Date
    Mar 2007
    Location
    Atlanta, GA USA
    Posts
    934

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Countrywide

    I would also expect to see other exotic products proposed to avoid write-downs, short sales and renegotiated balances. Banks will be willing to take whatever blood they can get from stones as long as they don't have to drop the principal balance due. How about an indefinite-term inflation-indexed mortgage with an artificially low initial payment that increases each year with the CPI. All the while interest is compounding away.
    Last edited by jimmygu3; 10-19-07 at 05:52 PM.

  5. #5

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Quote Originally Posted by Chumplor View Post
    Washington Mutual
    Given the news today, I guess I don't win.

  6. #6
    metalman's Avatar
    metalman is offline iTulip Select Premium Member, Chief Cynic
    Join Date
    Apr 2006
    Location
    New Hampshire
    Posts
    7,448

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Statewide Bancorp

  7. #7
    Join Date
    Jan 2007
    Posts
    11,536

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    I'm stuck with Wells Fargo. WaMu's been taken!

  8. #8
    Join Date
    Mar 2007
    Posts
    1,000

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Wachovia

    Plus a few extra characters. Apparently 10's the bottom limit.

  9. #9
    Join Date
    Feb 2007
    Posts
    401

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Quote Originally Posted by Andreuccio View Post
    Wachovia

    Plus a few extra characters. Apparently 10's the bottom limit.
    Damn you.

    First Citzens.

  10. #10
    Join Date
    Jun 2006
    Location
    US, Europe and Asia
    Posts
    4,592

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Quote Originally Posted by don View Post
    I'm stuck with Wells Fargo. WaMu's been taken!
    Might be a mid tier bank.
    Ed.

  11. #11
    Join Date
    Jun 2006
    Location
    Phoenix
    Posts
    33

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    My answer may not be eligable, but:

    Nobody. The 50 year mortgage will disappear before the 100 appears.

  12. #12
    Join Date
    Mar 2007
    Posts
    1,000

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Quote Originally Posted by Fred View Post
    Might be a mid tier bank.
    Just out of curiosity, are you sure it's going to happen anytime soon? That 50 year mortgage was over a year ago. I keep reading now that mortgages are harder to get because they've tightened up standards a bit. How would this be tighter?

  13. #13
    Join Date
    Mar 2007
    Location
    A Farm in Tennessee
    Posts
    1,642

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Chase Bank

  14. #14
    Join Date
    Aug 2006
    Location
    Hills above Silicon Valley
    Posts
    183

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Citibank. (The good ones were taken.)

  15. #15

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Bank United - if they survive

  16. #16
    Join Date
    Sep 2006
    Location
    Hollywood, CA
    Posts
    744

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    metalman beat me to it - see entry below
    Last edited by DemonD; 10-20-07 at 06:29 PM.

  17. #17
    metalman's Avatar
    metalman is offline iTulip Select Premium Member, Chief Cynic
    Join Date
    Apr 2006
    Location
    New Hampshire
    Posts
    7,448

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    Quote Originally Posted by DemonD View Post
    Statewide Bancorp
    http://www.statewidebancorp.com/

    They were the first to offer the 50, so I'm going to them for the first to 100.

    (Incidentally my first thought was the same as Sapiens - BofA - but after further thought, I now believe that BoA and other major banks have too much inertia to be creative enough to offer this. And also a hundred year loan is likely to be riskier too, so again a regional bank might be willing to roll the dice more than a major one. The fact that EJ indicated this backs up my presumption.)
    good call, but i beat ya to it... http://www.itulip.com/forums/showthr...8017#post18017

    what fred says about looking to the mid tier banks makes sense. they have to compete with the big boys... be more creative.

  18. #18
    Join Date
    Jun 2007
    Location
    Maryland, USA
    Posts
    412

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    GMAC. Gotta pay for those retirees pension benefits by some exotic scheme!

  19. #19
    Join Date
    Apr 2007
    Posts
    36

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    National City Bank

  20. #20
    Join Date
    Sep 2006
    Location
    Hollywood, CA
    Posts
    744

    Default Re: Contest: Who will offer the Afterlife Mortgage first?

    dammit metalman, you're right. can I change mine? lol. I'm going to go with First Federal bank of CA

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.

Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.

Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.

Objectionable posts may be reported to the board administrators via Contact Us.

-->