What is a 40 Year Fixed Rate Mortgage?
the same for the 40-year term of the loan. The principal amount is reduced, slowly at first, and then at a faster and faster pace, over the life of the loan until it is paid off. The primary advantage of a 40-year fixed-rate mortgage is making monthly payments more affordable without taking on the risk of an adjustable rate. In addition to buyers in high-cost areas, the 40-year fixed mortgage also appeals to buyers with small down payments. Reducing the monthly payments on large loan amounts is accomplished by stretching the repayment term by an extra 10 year. Predictability is another big plus with the 40 year fixed rate mortgage. You know exactly how much interest you will pay over the term of the loan. The total monthly payment of principal and interest is fixed, and in early years it consists primarily of tax-deductible interest. You never have more questions than when you are preparing your financial future. And its never more important to get an honest answer. Our trained loan pr
