When new cars cost $5,000 consumers took our two or three year car loans. Now they are commonly a five to seven year commitment. Likewise mortgages, which, four decades ago were amortized over 20 years, then 25 years, and now commonly 30 years, may soon have a new standard: 40 year home loans.
This type of mortgage loan is repaid by the borrower making monthly payments over a period of 40 years. If the borrower’s payments are ‘fixed’, the borrower can expect to make the same monthly payment for the entire term of the loan. The loan may also be set up as an adjustable rate mortgage with initial fixed periods of three, five, seven or ten years.
40-Year Mortgage
by webmaster on 14. Apr, 2010 in Glossary of Terms, Our Services