Why should I take a 40 year fixed rate mortgage?


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.
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