Whats the latest on the 40 year mortgage?
What are the rates/points compared to a 30 year note?
For those in the biz, how popular are they?
Does anybody have one?
What are the pro's & cons?
Whats the latest on the 40 year mortgage?
What are the rates/points compared to a 30 year note?
For those in the biz, how popular are they?
Does anybody have one?
What are the pro's & cons?
a 40/40 are out there but it comes with a hit on the rate and over the long term it is not worth it:
400,000 30year 6%=$2398
400,000 40year 6.125%=$2236
over the life of the loan it would be an additional $210,000 on the 40 year
Whats the latest on the 40 year mortgage?
What are the rates/points compared to a 30 year note?
For those in the biz, how popular are they?
Does anybody have one?
What are the pro's & cons?
Con-Its takes 40 years to pay off your house. :cry:
Actually I was wondering the same. From what I heard is, it really doesn't lower the monthly that much. But I'm probably wrong as usual.
Good for subprime clients who don't qualify for an interest only loan (but that's not a 40/40, its a 2/38 or 3/37) because it keeps the payment lower than say a 2 or 3 year fixed.
Not so great for A paper people - like it was said, the payment isn't a whole lot lower, and you end up paying way more interest back. :rollside:
Why would anyone even consider a 40 year loan? I do all mine at 15 year. Its only a differance of a couple hundred dollars, you get a better interest rate and you build equity much faster. 40 year is just plain dumb.
Why would anyone even consider a 40 year loan? I do all mine at 15 year. Its only a differance of a couple hundred dollars, you get a better interest rate and you build equity much faster. 40 year is just plain dumb.
So how much of a difference in monthly payments would it be for a $400,000 loan?
I might not live another 40 years :crossx:
Don't forget about the 50 yr loan... pymt is similar to the 30 yr i/o but you are paying down the mtg
so lets see a show of yeas to who has lived in the same house for 20-30-40 years???? maybe its an age thing but i dont much care about building equity by bigger payments.... 15 years in this house and thats been the longest, and its currently on the market
The majority of people dont stay in their homes long enough to pay them off. If your not getting close to retiring or it's your first or second home, chances are your gonna sell and move again down the road. 40yr/50yr or the I.O. is not a bad deal if you know your gonna be out in 5-7 years. Most of the 15yr and 20yr loans are for the ones that are looking towards retiring and know they are gonna stay put for the long haul.
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