Mortgage lenders are always on the lookout for new ways to take money from homeowners. The 40 year mortgage is a perfect example of this. The 40 year mortgage is very similar to a traditional 30 year mortgage; the main difference is that the loan is amortized over 40 years. Depending on you needs you will be able to choose fixed or adjustable interest rates. The advantage of a 40 year mortgage is the lower payment amount.

Is a 40 Year Mortgage Right For You?

If you are considering a 40 year mortgage to purchase your home and need the lowest payment possible, a 40 year mortgage could be used as a stop-gap measure until your income will support better financing. Most homeowners will find traditional 15 or 30 year mortgages are the most cost-effective ways of financing their home purchases. By Louie Latour

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