Question:

Why should I take a 40 year fixed rate mortgage?

Answer:

The 40 year fixed rate mortgage is a great choice for inexperienced borrowers who cannot afford a 30-year mortgage but don't want the risk associated with rate adjustment on ARMs.

A 40-year fixed rate mortgage qualifies you for more house.

The 40-year fixed rate mortgage keeps your payments low and allows you to qualify for a larger loan amount, and respectively for ‘more house'. First-time homebuyers and those living in high-cost areas are most likely to find the 40-year FRM an attractive option. This long amortization period keeps payments down and offers stability.

Lenders offering the 40-year fixed rate mortgage will usually offer other mortgage products with the same 40-year term. For example, hybrid ARMs - 3/1, 5/1, 7/1 - are also widely available with amortization period of 40-years.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: