40 year interest only mortgage

mortgage lenders are always looking for new ways to raise money from homeowners. The mortgage of 40 years is a perfect example of this. Here is what you need to know about these expensive mortgage option.

The mortgage of 40 years is very similar to a conventional 30-year mortgage, the main difference is that the loan is over 40 years. Since there is more risk for the lender interest rates are higher, and you pay significantly more in the financing of the costs for the additional ten years. Depending on your needs, you can choose fixed or adjustable interest rates.

The advantage of a mortgage of 40 years is the lower payment amount. The problem with this loan is that you pay most of the interest in advance, while your payment is low, capital will be in a snail's pace. Most of your money at the top goes in the pocket of the lender as interest.

40 years is a mortgage right for you?

If you have a mortgage of 40 years to purchase your home and need the lowest possible payment, a mortgage of 40 years could be used as a stopgap measure until your income is a better financing. If you plan to refinance or move in the next five years, this is not the mortgage for you. Most homeowners will find the traditional 15 or 30 years mortgages are the most cost effective way of financing their purchases.

You can learn more about your mortgage options, including how to avoid common mistakes by registering for a free mortgage guide.

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Louie Latour specializes in homeowners, such as advertisements, to identify common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need To Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

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40 years mortgage