The 40-Year Mortgage
Benefits of a 40-Year Mortgage
In the last few years we've seen the introduction of the 40-year mortgage. Some homeowners were excited others were not. The 40-year mortgage allows the homeowner to lower their monthly payment compared to a traditional 30-year mortgage. There are longer mortgages, such as the 50-year mortgage. With the 40-year mortgage, you are paying both principal and interest on a monthly basis. Most of the time the payments are slightly higher than an Interest Only payments but lower than a traditional 30-year mortgage. Below are some different lengths in mortgage terms:
10-Year Mortgage
15-Year Mortgage
20-Year Mortgage
30-Year Mortgage
40-Year Mortgage
50-Year Mortgage
Adjustable rate mortgages (mortgages that have a fixed term and then adjust) are usually 30-year mortgages that have a fixed rate for 2, 3, 5, 7 or 10-years. There are some mortgage programs that base their adjustable rate programs on 40 or 50-year mortgages
Kevin O’Connor
Mortgage Consultant
www.koloans.com
800.550.5538
|
