The 40-year Mortgage is ideal for borrowers who face affordability issues and think homeownership is beyond their reach. First-time homebuyers, or those living in high-cost areas seeking manageable monthly payments may find this amortization term attractive. The 40-year Mortgage is eligible on both standard fixed-rate products as well as our standard 3/1, 5/1, 7/1 and 10/1 hybrid ARMs.
This is best for those that are looking at a long-term investment. Just be aware that many 40-year mortgages have a balloon payment due after 30 years. Make sure you check it out thoroughly before you sign.
Here are some links articles discussing the pros and cons of 40-year mortages:
The Statesman re: Bankrate.com
Bankrate - Older Article
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