Home Mortgage Applications

Should You Get a 40-Year Mortgage?

Obtaining a mortgage requires a good amount of research. How long should your mortgage be? What provider should you use? The questions can seem endless. If you’re considering a 40-year mortgage, read on for a bit of valuable insight.

Benefits of a 40-Year Mortgage

Home contractThe main drawback of the 40-year mortgage is pretty obvious: 40 years is a long time. However, that doesn’t mean it’s necessarily a bad idea.

The main reason buyers sign on for these types of loans, which add 10 years to the traditional 30-year mortgage, is to take advantage of smaller monthly payments.

Drawbacks of a 40-Year Mortgage

However, the shorter-term loan is usually more advantageous for the homebuyer. The drawback becomes apparent simply by calculating the cost of additional interest payments, which can total thousands for the privilege of just saving the difference of a few dollars in monthly mortgage payments.

But for those with a less reliable cash flow, or who have a limited income, a 40-year commitment can be enticing, especially if a shorter-term mortgage is financially not an option.

Learn More about Mortgages

home buying 20As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.