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With the Income You Need to Buy a Median-Priced Home rising, you may need to Learn About Adjustable Rate Mortgages to preserve affordability.

With the Income You Need to Buy a Median-Priced Home rising, you may need to Learn About Adjustable Rate Mortgages to preserve affordability.

Can I get a 40-year mortgage?

Is it possible to find a 40-year mortgage?

The answer should be "yes", although most are adjustable-rate loans. If you can find a 40-year fixed-rate mortgage, you might be surprised to find that the savings aren't so great. At 7%, for example, you'd pay $6.65 for every thousand dollars you borrowed. That drops only a little, to $6.21, for a 40-year term.

For a $100,000 loan, that's only about $44 per month. The savings, such as they are, fall at higher interest rates. At 7.25%, you'd save only about $25.60 per month.

The catch, of course, is that the interest cost over time is also significantly higher for the 40-year term.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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