40 year mortgage, 40 year loan, 40 year home loan, 40 year mortgage loan
Released on = June 15, 2006, 4:10 pm
Press Release Author = David Domm - AboutYourHomeLoan.com
Industry = Financial
Press Release Summary = The 40 year mortgage has hit the market and it is making it easier for first time buyers to afford their mortgage payment.
Press Release Body = More people are now turning to the 40 year mortgage. The 40 year mortgage option is seen as a way for more first-time buyers to qualify into the expensive housing market.
Private lenders have been offering 40 year mortgage loans for some time. In some cases you can get a 40-year loan with no money down if you are a first-time buyer.
It\'s an option for those who cannot afford payments on a traditional 30-year loan and are not able to absorb increased payments with adjustable or shorter-term loans.
The 40 year mortgage can require a smaller qualifying income and monthly payments would be less than shorter-term loans. However, the interest rate is slightly higher than that for a fixed 30-year loan. Also, over the life of the loan, the buyer will pay substantially more interest (if they kept the loan more than a few years - whcih is normally the extent of how long someone keeps home loan these days).
People are finding 40-year loans online these days using these search phrases:
40 year mortgage 40 year loan 40 year home loan 40 year mortgage loan
On a $300,000 mortgage, the buyer is only paying $140 less per month with the 40-year loan but will be paying for it for 10 more years.
The Federal Reserve has increased short-term interest rates 14 times since June 2004. That can have a partial effect on higher fixed and adjustable rates for home loans.
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