The government announced a new round of household debt management measures that focus on reducing risks in loan agreement, such as extending the portion of amortized loans
and strictly enforcing the ability-to-repay rule.
In recent years, many savings and loan associations have put their conventional amortized loans at 15 to 18 years.
This study clearly convinces the writer that neither government agencies nor private lenders should guarantee, insure or make long-term amortized loans for a period beyond 25 years, and that under no ordinary conditions should the downpayment be less than 10% in cash or its clear equivalent.
The amortized loan balance on a 30-year maturity does not decline faster than the 2% depreciation until the end of the ninth year.
And there are other lending products such as Fannie Mae and FHA, which allow 25-35 year fully amortized loans
. Lending firms can offer and suggest products such as portfolio loans' bridge loans, mezzanine loans, conduit loans and government programs, such as Fannie Mac, Freddie Mac and FHA/HUD loans, that will accommodate the borrower's individual needs and circumstances.