40 year fixed rate mortgages allow consumers the ability to repay a mortgage over a 480 month period or time. Does that sound like a long repayment period? It should! There are definite down sides to 40 year home loans. While these products may allow you to keep your payments low due to the drawn out amortization schedule, you will likely end up paying a considerably larger sum of interest than you would with a 20 year mortgage or a 30 year mortgage. And, because of how loans amortize, it can take a very long period of time before you start to make a big dent in your principal reduction on a monthly basis. Confused yet? Let the lenders and brokers featured on PriceAMortgage.com help you sort through the pros and cons of 40 year mortgage programs.
About 40 Year Home Loans
- 40 year mortgages rates are typically higher than other fixed rate mortgages.
- Monthly payments may be lower than with other loans as the loan amortizes over 480 months.
- Consumers will likely end of paying a larger sum of interest when compared with shorter term fixed rate mortgages.
When we first started rates tables on some of our research web sites there were multiple lenders and broker posting rates for 40 year fixed rate products. Lately, it has dried up and there are frequently no companies posting 40 year mortgage rates. It does not mean that the lenders and brokers no longer offer the product, it’s just they likely don’t think it’s worth their time and energy to post them because either they don’t believe the product or there is just no real interest their with borrowers. If you want to speak with a mortgage company serving your state, check out the rate tables on PriceAMortgage.com and reach out to the various companies directly.