Is a 40 year mortgage a good idea?
As most answers go, “it depends”! You really need to do your homework on this loan. Make sure you know what you are getting into before you get into a 40 year mortgage. The payment might sound really appealing, but the long term affects may not be so glamorous. Remember the term when buying a car, “upside down” or “negative equity”? That could be a reality in many peoples home in the near future. A 40 year mortgage is making those terms come to reality with homes today. The time period we are in today for houses is great; many people are making hand-over-fist on selling homes. What happens when there’s a slow down or the “Bubble bursts” and you are stuck in your 40 year mortgage? Picture this: you just signed a loan for a 40 year mortgage, rates rise for new home buyers, home prices start to drop, economy inflation is gradually increasing…..is your heart racing or skipping a beat? It should be. The 40 year mortgage could get you even further into debt than you originally had planned. A
