Chitownproperty

This month the Treasury Department reintroduced the 30-year bond, fueling speculation that lenders would start offering longer term mortgages with up to 40 and 50 year terms. Lenders rely on government bond rates to set their mortgage rates, and for the past five years in absence of the 30-year note, they had to rely on the 10-year note for guidance. Now, with a long-term baseline rate to help them determine risk, they may be able to offer longer mortgages with lower monthly payments to first-time home buyers. The money doesn’t come for free though; longer terms mean higher rates, even stretched over 40 or 50 years.