40 Year Mortgage
If you want to buy a new house nowadays, you will be quite surprise of the increase of the house pricing compared to the price one year ago. The increase in price could easily go to 20% till 30% higher than the price last year. Obviously having a mortgage might be the only way out for first time buyers.
Sometimes taking a mortgage doesn’t solve this problem as the monthly payment might be still quite high. One of the ways to lower the monthly payment is to choose longer term mortgage. So later than taking a 10 year mortgage, you could take 20 year mortgage to lower the monthly payment. Although the total money you have to pay when the mortgage period ends is higher if you choose the longer term mortgage, for some people, this is the only way to get their dream house without burning their pockets each and every month.
If this interests you, you might be interested to find out that there is 40 year mortgage out there. Although not all mortgage companies offer 40 year mortgage, you may find some that do. The reason behind this is quite simple. Those financial institutions are quite reluctant to lend their money out for such a long period. By accepting longer period, they have bigger risk, and bigger risk is something that everybody avoids. The good news is Fannie Mae recently announced their intention to purchase more 40 year mortgage on the market. That may result in more financial companies offering 40 year mortgage to average home buyers.
So, do you really want to have a 40 year mortgage? Only you who know the answer to the question.
However, one thing you have to keep in mind is that the longer the period of the mortgage, the bigger the total amount of money you have to pay in the end. Some companies also charge bigger interest for longer mortgage period, even though the monthly payment might still be affordable to you.
Another thing you have to consider is the usage period of the house you are going to buy. Most of the people don’t live in a house for 40 years. Do you really need to pay for 40 years for a house that you may not live in for that long?
If your financial condition forces you to take longer term mortgage, than go for it. But, if you are able to purchase shorter term mortgage, just remember two points above.
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Disclaimer:
The general information provided by http://MortgagePalace.blogspot.com is intended as an educational purpose only, and should not be interpreted as legal advice. The law varies drastically by location and legal specialty, and http://MortgagePalace.blogspot.com makes no promises about the accuracy or completeness of the information provided. You should not rely on our information when making legal decisions. We recommend that you consult with a lawyer to get professional legal advice on how best to deal with your situation.
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** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your ezine, blog, autoresponder, or on your site so long as you put a link back to this original post, leave all links in place, and do not modify the content in anyway.
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Sometimes taking a mortgage doesn’t solve this problem as the monthly payment might be still quite high. One of the ways to lower the monthly payment is to choose longer term mortgage. So later than taking a 10 year mortgage, you could take 20 year mortgage to lower the monthly payment. Although the total money you have to pay when the mortgage period ends is higher if you choose the longer term mortgage, for some people, this is the only way to get their dream house without burning their pockets each and every month.
If this interests you, you might be interested to find out that there is 40 year mortgage out there. Although not all mortgage companies offer 40 year mortgage, you may find some that do. The reason behind this is quite simple. Those financial institutions are quite reluctant to lend their money out for such a long period. By accepting longer period, they have bigger risk, and bigger risk is something that everybody avoids. The good news is Fannie Mae recently announced their intention to purchase more 40 year mortgage on the market. That may result in more financial companies offering 40 year mortgage to average home buyers.
So, do you really want to have a 40 year mortgage? Only you who know the answer to the question.
However, one thing you have to keep in mind is that the longer the period of the mortgage, the bigger the total amount of money you have to pay in the end. Some companies also charge bigger interest for longer mortgage period, even though the monthly payment might still be affordable to you.
Another thing you have to consider is the usage period of the house you are going to buy. Most of the people don’t live in a house for 40 years. Do you really need to pay for 40 years for a house that you may not live in for that long?
If your financial condition forces you to take longer term mortgage, than go for it. But, if you are able to purchase shorter term mortgage, just remember two points above.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
Disclaimer:
The general information provided by http://MortgagePalace.blogspot.com is intended as an educational purpose only, and should not be interpreted as legal advice. The law varies drastically by location and legal specialty, and http://MortgagePalace.blogspot.com makes no promises about the accuracy or completeness of the information provided. You should not rely on our information when making legal decisions. We recommend that you consult with a lawyer to get professional legal advice on how best to deal with your situation.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your ezine, blog, autoresponder, or on your site so long as you put a link back to this original post, leave all links in place, and do not modify the content in anyway.
-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
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8:05 AM
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