40 Year Fixed Rate Mortgage or Interest Only Mortgages?

Pros & Cons of these Controversial Loans

By Justin Levine

There have been many opportunities available within the housing market over the last few years. Many types of borrowers have migrated away from the interest only mortgage and towards the forty-year fixed mortgage because of the low payment and fixed monthly payments.

Homebuyers are choosing 40 Year mortgage loans, Interest Only Mortgages, and other mortgage options in order to obtain the home that may have seemed unattainable.

40 Year home mortgages have increased in volume due to the accessibility they provide to the consumer. This home loan allows a potential buyer to not forgo their full income monthly to pay a mortgage that is not feasible. The consumer, when choosing to move forward and attain a 40 Year Mortgage, is avoiding the hampering of being reliable for paying off the majority of their principal in their loan and instead choosing to stretch out the expense in order to not be burdened by impossible payments. You pay a reasonable interest rate in addition to a manageable principle rate. 40 Year Mortgages are typically quite feasible and suiting for the buyer with less experience in the housing market.

 

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