I agree with Rich. The only thing people care about is their monthly payment. I believe most people feel they never will pay their homes off, nor do they want to. I think most people see their California home as an investment more than anything. Get in at any cost, make tons of money on the way up (it never goes down), and then just before retirement dump the place at huge profits. They then move out of Cali with their fortunes and live happily ever after.

This 50 year loan and the housing market is sounding more and more like Japan. They had 100 year loans. Look at where the housing market in Japan is today….

I think the inevitable will come, its just all these creative loans will push that day further out.