These mortgages would have seemed like a far-out concept a few years ago, but the 50-year fixed-rate fully amortized mortgage is catching on. It’s close to being an interest-only loan, but does chip away at the mortgage balance each month. Like interest-only mortgages, it’s a way to minimize monthly payment without the worry of rising rates and payments that plaque holders of adjustable-rate mortgages. Or it could be a hybrid 50-year loan (combining fixed and adjustable rates) producing even lower monthly payments, at least during initial years.

There have been an increasing number of applications for 40-year mortgages in recent months. Adding another decade to the loan term is the next logical step. The trend is not surprising, considering the price tags on today’s homes. Consumers need all the help they can muster to purchase and finance a needed home. And considering that the average family lives in a home for a period of 5 to 7 years, such a loan often makes a lot of sense. It not only minimizes the outlay of cash with each monthly payment but also helps home buyers qualify for a mortgage.