What makes a 40 year fixed rate mortgage unique? Think about lower mortgage payments, 480 predictable, consistent and equal mortgage payments and greater purchasing power.
Not only does the mortgage payment remain the same for 40 years, the interest rate also never changes. This is important when considering the fixed rate 40 year mortgage so as not to confuse it with a common adjustable rate 40 year mortgage program.
As with most fixed rate home loans, more interest is paid in the early years and less principal is paid down. In other words, the balance of the mortgage does not decrease quickly in the first few years. But fast mortgage pay offs may not be for everyone.
This is especially true with a 40 year term. Although some view this as a disadvantage, for those seeking home mortgage interest deductions at tax time, it could be a great solution.
The 40 year fixed mortgage not only has lower mortgage payments compared to all of the other fixed rate programs, it has a special benefit for home buyers. More purchasing power!
The lower mortgage payments could be just the difference you need to qualify for the home of your dreams.
Visit the Easy Home Mortgage Payment Calculator page.
Follow the steps to calculate a mortgage payment. You can even view and print your own amortization schedule.
If you want locked into a fixed rate and lower mortgage payments, the 40 year fixed mortgage may be the right home loan for you.
What's shaving have to do with your payment? Go to 20 Year Fixed Rate Mortgage to find out.
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