morgages, Anyone know anything about a 40 year morgage ?
By Sissygrl
@Sissygrl (10912)
Canada
April 9, 2008 9:19am CST
My hubby recently told me they have started giving forty year morgages, i have never heard of this, but it WOULD make it a lot more affordable to buy a house in this section of the world. Have you heard of this ? Is there any downfall besides the mass ammounts of intrest that will be added for that length of time ?
2 people like this
8 responses
@cynicalandoutspoken (4725)
• United States
9 Apr 08
i haven't heard of 40 year mortgages but it only seems feasible that the mortgage companies have to do something for all the people in danger of having their homes foreclosed on and the failing real estate market.
I have a 30 year mortgage on this house and while it is nice that I am only paying $211 a month the thought of not owning this house until I am 56 is a little disconcerting. That's why I have been paying $440 for the past 3 years and would have it paid off in another 2 if I weren't moving this summer where my mortgage is going to be $1100.
So I really wouldn't want a 40 year mortgage unless I was going to be able to double up on the payments.
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@Sissygrl (10912)
• Canada
9 Apr 08
Thanks for your answer Cyn, but even though its TONS of interest.. isn't it STILL better then paying rent to someone else who is paying off THEIR morgage ? I mean, If we dont start now.. we are both close to 30.. we will NEVER own our own home!! lol. What do you think ?
1 person likes this
@cynicalandoutspoken (4725)
• United States
9 Apr 08
Well you do have a point there with paying someone rent to pay their mortgage. That is why I bought this place. I was paying my landlord $440 to rent his place which was half the size of this one.
Look into it more. Make sure there isn't a penalty payment for paying it off early or refinancing it to a lower rate. And above all else, read the fine print.
As long as you won't be stuck in it for a full 40 years then I do believe it is a good idea to go a head and get your own place. Mortgage rates are way way down and banks are practically begging people to buy houses. So go for it!
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@foxyfire33 (10005)
• United States
9 Apr 08
I haven't heard of this but I may look into it since we're in the process of buying a house. Having super low payments now would mean getting the house fixed up sooner....and then all the extra money could toward the principle on the mortgage so we wouldn't pay so much interest.
I personally think that long mortgages are the way to go. I know I don't have much experience with it but here's my thinking: You get a low payment that will be practically impossible to not be able to make (unless some major life change happens), then you don't have the stress of foreclosure looming when money gets tight and in good times you can pay double payments and get that much further ahead. If something happens that causes you to need to move, you can rent the house and make a really good profit even after making the mortgage payment.
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@Sissygrl (10912)
• Canada
9 Apr 08
You got the pro's down pat foxy ;)
The interest is the only downfall i think. I dont have any experience with this kind of thing at all.. we are thinking about going to a morgage broker to see what they say we can borrow. It's hard to find a place to rent that meets our standards! I'm sort of picky!! I need a non smoking place, with windows, not a lot of neighbour noise, a yard, and needs to be walking distance to groceries and schools. lol. its nearly impossible. This place we live in now would be great, its cheap, but its in the basement so there are no windows, and its only a one bedroom and i have two girls! its okay while they are so little, but they need room to run rael soon.
Thanks for your response!
@foxyfire33 (10005)
• United States
9 Apr 08
Yeah, the interest is the only downfall I can think of but that can be taken care of you make higher payments when you're able with the extra going towards the principle. I know it's something I'd look into if it's an option here.
LOL, yes your girls will need some more room before you know it...although I do know a family that manages with 2 bedrooms and 5 kids, 2 boys and 3 girls, ages 8 and under. I think the baby is the only one in their bedroom but I'm not sure how they do it. Of course the mother should be medicated LOL but the father insists she just needs prayer...I say she should pray right before throwing back a few prozacs, the poor girl, it's a messed up little family.
Anyway, I've done the rental apartment thing and I just don't ever want to do it again. If I want to be awake at 3am watching tv and yes flushing my toilet, I think I should have that right.
1 person likes this
@hockeygal4ever (10021)
• United States
9 Apr 08
Wow, and I thought 30 years was like a lifetime! I personally don't think it's very feasible to stretch out the payments another ten years! The interest alone would be horrendous!
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@sweetaspie52 (2359)
• United States
9 Apr 08
I wish I could afford to buy a home but when you live on a fixed income it is hard so I know nothing about morgages
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@CatsandDogs (13963)
• United States
9 Apr 08
The only downfall I can see is the 40 years of paying on a house, that's a long long time however as long as the person pays more than their actual payment then it may not take 40 years to pay it off however, the payments would be in a reachable amount to be able to pay each month in such a case that one were to lose his/her job and have to accept a lower paying job to make ends meet. I hope I'm making some sense here for it's hard to explain like this. So the only downfall would be the extra 10 years it would take to pay it off if the exact amount of the payment were made each month so pay more is always better.
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