Becoming a new home owner and dealing with mortgages are never easy. If you are looking at 40 year mortgages as an alternative it is wise to first consult with a loan officer and look over the options that are available. There might be better ways to invest your money.
To be taken into consideration is also the fact that it takes longer to build equity on 40 year mortgages than it would take for, say 30 year mortgages. At 8 percent, a $150,000, 30-year mortgage will take $100 of the first $1,100 to reduce the principal balance. Extending the loan to 40 years will mean taking $42 for the $1,042 to go towards the principal. You want to take only mortgage loans that work in your favor…