40 year mortgage rate calculator

If you are looking for a way to make your mortgage payment more affordable, you can create a 40-year mortgage.

The 40-year mortgage may lower your monthly payment. Since the interest rates are on the rise, there are more and more lenders offering 40-year mortgages. They do so in the interests of customers and affordable housing. There are even companies with 50-year mortgages, especially in California.

"" People use them to lower payments for the houses they would otherwise not be able to buy, "said Jon Eberhardt, president of the California Association of Mortgage Brokers.

But there are also disadvantages for the 40-year mortgage. Longer-term mortgages are often harder to find than traditional 15 or 30-year mortgages. You may have become a national mortgage bank or lender, your home town bank will not want to take the risk.

If you choose to stay in your home for the long route, a 40-year mortgage will cost much more in the long run. For example, a $ 200.000 30-year mortgage at 6.5% with a payment of $ 1,264.14 per month. We assume that all mortgages in this article have a fixed interest rate. Over the duration of the loan, you pay the lender $ 370,242.00.

If you look at the $ 200,000 at 6.625% for 40-year-old, your monthly payment is $ 1,188.77 per month. Over the life of the 40-year mortgage, you repay the lender $ 475,508.00.

If you opt for one of the new 50-year mortgage products, you are probably a little higher interest rate. If you look at the $ 200,000 at 6.75% for 50 years, your monthly payment would be $ 1,165.25. Over the life of the 50-year-old, you pay back $ 582,625.00.

For less than $ 100 per month in savings, you pay more than 100,000 U.S. Dollar to the lender.

You can say that you are not planning to settle in the home for so long. Do not forget, mortgages have interest that is pre-loaded. The majority of the payment goes to interest at the start. They are not building little equity, so you get less back when you sell the house, where home prices are not increased.

Forty-year mortgages are a good opportunity to buy an expensive home. But you need to know that the high costs.

The advantage is that often you can find some flat, 40-year mortgages. This gives you the fixed payments you need while you are in a mortgage. Unless you live in an apartment and do not need the money you do not need to worry about the equity building slowly. They are able to buy a house that you would normally not apply to.

But remember that most homeowners only in a home for seven years. If you choose to, within five years, you can create a five-year hybrid on a 40-year mortgage. This will give you the first five years at a fixed interest rate. You can not use a lot of money when you sell, but you live in the home for five years. It is a trade-off.

When selecting a non-traditional type of mortgage, you have to ensure the personal pros and cons. How much risk can you is up to you. How important that is at home, can take some precedence over building equity. Knowledge that the wisest choice is a 15-year fixed mortgages. Look at your options thoroughly before making your decision.

Martin Lukac represents RateTake lending marketplace prices. RateTake hit consumers with multiple lenders offering low prices. Do you have too much debt? Get assistance and debt relief you will be amazed at what we can do together.