Lakewood Ranch Buyers should consider 40 year mortgage

THE NEWER LONGER MORTGAGE

Forty-year mortgages don’t always seem like a good idea when compared to a 30-year loan, but the popularity of the longer mortgages is gaining ground because many homebuyers view them favorably when compared to an interest-only home loan.

For a slightly higher interest rate, borrowers receive an initial monthly payment nearly as low as the one on a comparable interest-only loan, with the amortization enabling them to slowly amass equity in the property.

Argent Mortgage President Sam Marzouk reports that 40-year loans are particularly attractive to consumers who consider their home to be a long-term investment.

Some consumers should be aware, though, that many loans that amortize on a 40-year schedule have balloon payments that come due after 30 years.