Are You Ready for a 40-year Mortgage?

Real estate prices have been increasing steadily over the last five years, particularly on the East and West coasts. In parts of California, homes are selling for 33% more than they were a year ago. This has made it more difficult than ever for first-time homebuyers to purchase a home.

Over the years, a number of new mortgage options have become available to prospective buyers that ease the burden of buying a home. Buyers can now obtain a mortgage with a variable interest rate that rises or falls with the market or even a mortgage that requires only interest payments for the first few years of the loan term. This allows buyers to make smaller payments early in the repayment schedule while purchasing a more expensive home than they otherwise might be able to afford. The payments would increase in later years, but so, presumably, would the income of the buyers, so that the home would still be within the buyers' range of affordability.

A relatively new mortgage option that may soon adjustable rate mortgage and the interest-only mortgage in popularity is the mortgage with a 40 year term. While most mortgages offered today are for either 15 or 30 years, the 40 year mortgage has been available for nearly 20 years, but few lenders offer it as an option, as they are often reluctant to tie up their money for such a long period of time. That may change, however, as Fannie Mae has announced their intention to purchase more 40-year mortgages. With Fannie Mae purchasing more 40-year mortgages on the secondary market, lenders will probably be more willing to offer them to customers.

Interest rates will likely be somewhat higher for a 40-year mortgage than a 30-year mortgage, but the extra length of the loan term will keep the payments lower than with a traditional mortgage. Prospective buyers should be aware that they will pay more in interest on a 40-year mortgage than they will on a traditional 30-year note. Studies show that most homebuyers do not stay in their homes for anywhere near 30 years, let alone 40. This being the case, the market for 40-year mortgages may remain fairly small. But for some buyers, it may mean the difference between continuing to rent and buying the home of their dreams.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.

---

Google News Updated : Sun, 12 Oct 2008 05:51:03 GMT On the trail to the White House - Fort Worth Star Telegram The Age On the trail to the White House Fort Worth Star Telegram - 33 minutes ago Sen. Barack Obama, Democratic presidential nominee, at a rally in Philadelphia on Saturday. AP/ALEX BRANDON Today’s headlines Report stings Palin over troopergate flap; Raw anger showing up in McCain crowds, candidate taking steps to minimize it; ... McCain Asks Supporters to Show Obama Respect Wall Street Journal Obama Thanks McCain for Urging Supporters to be Respectful Voice of America Washington Post - Chicago Tribune - ABC News - Bloomberg all 733 news articles Publ.Date : Sun, 12 Oct 2008 05:17:46 GMT Five killed in New York fire; 300 acres burn in Napa Valley - Austin American-Statesman CBS News Five killed in New York fire; 300 acres burn in Napa Valley Austin American-Statesman - 1 hour ago NEW YORK - A family of five, including three children, died in a blaze that filled an apartment with thick smoke and kept the victims from escaping through the front door, fire officials said. Napa County wildfire forces evacuations of over 100 homes Los Angeles Times Fire Threatens Napa Valley Homes and Wineries New York Times KEYC - CBS 5 - San Francisco Chronicle - WSBtv.com all 422 news articles Publ.Date : Sun, 12 Oct 2008 04:27:05 GMT Singer Lisa Marie Presley gives birth to twins - The Associated Press The Associated Press Singer Lisa Marie Presley gives birth to twins The Associated Press - 3 hours ago LOS ANGELES (AP) - Lisa Marie Presley is a mom again. A publicist says the 40-year-old singer gave birth Tuesday to twin girls, whose names were not released. Lisa Marie Presley delivers twins: report Reuters Today's News: Our Take - Lisa Marie Presley Gives Birth to Twin Girls Seattle Post Intelligencer E! Online - People Magazine - Monsters and Critics.com - Hollywood.com all 569 news articles Publ.Date : Sun, 12 Oct 2008 02:11:28 GMT Bush, allies seek to calm jittery investors - BusinessWeek Bush, allies seek to calm jittery investors BusinessWeek - 4 hours ago By JENNIFER LOVEN and MARTIN CRUTSINGER President Bush and financial leaders from nations rich and poor pledged Saturday to intensify their efforts to unblock a frozen financial system before it does more damage to an increasingly shaky global economy. Bush Says US Must Take Lead in Solving Crisis (Update3) Bloomberg Bush, allies seek to calm jittery investors The Associated Press New York Times - Austin American-Statesman - AFP - KSFY all 1,542 news articles Publ.Date : Sun, 12 Oct 2008 01:30:21 GMT Van driver's work in Mass. aided Nobel winners - Boston Globe Voice of America Van driver's work in Mass. aided Nobel winners Boston Globe - 1 hour ago HUNTSVILLE, Ala.—When two American scientists won a Nobel Prize this week in chemistry, the driver of a car dealership's courtesy van had reason to take special interest. Video: Nobel Chemistry Prize Goes for Jellyfish Protein AssociatedPress Comment by Jeremy M. Berg, Ph.D., Director National Institute of General Medical Sciences The Daily Yomiuri - The Associated Press - Los Angeles Times - WTEN all 1,250 news articles Publ.Date : Sun, 12 Oct 2008 04:14:18 GMT McCain supporters face uphill climb in blue Jersey - Newsday Sunday Times.lk McCain supporters face uphill climb in blue Jersey Newsday - 15 hours ago By WAYNE PARRY | AP Writer WOODBRIDGE, NJ - Walter Zjawin is trying to help John McCain do what no Republican has done in 20 years: win a presidential general election in New Jersey. Maine now on McCain radar Central Maine Morning Sentinel McCain inches closer in Saturday's Gallup Kansas City Star Boston Globe - CBS News - Washington Post - Ethiopian Review all 220 news articles Publ.Date : Sat, 11 Oct 2008 14:04:37 GMT Theatrical Review of Body of Lies - DVDTOWN.com Theatrical Review of Body of Lies DVDTOWN.com - 5 hours ago By Jason P. Vargo "Body of Lies" is a certain type of movie designed for a certain type of moviegoer. I think the tagline describes the movie perfectly, actually. Body of Lies E! Online 'Body of Lies': Desert Norm, By Kurt Loder MTV.com Boston Herald - Los Angeles Times - Radar Online - Entertainment Weekly all 1,041 news articles Publ.Date : Sun, 12 Oct 2008 00:19:39 GMT Add Data Feed Content to Your Website Amazon Tool

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

5 Ways to Use Your Home Equity Line of Credit

Your home is a source of pride and accomplishment. Did... Read More

Mortgage After Bankruptcy

Most people probably assume that obtaining a mortgage to purchase... Read More

Buying A Home With No Money Down or Bad Credit - PMI Can Make It Easier

Private mortgage insurance is an excellent method for homebuyers who... Read More

Finding the Best Home Improvement Loan Rate

If you're looking for a good home improvement loan rate,... Read More

Kings Bay Saint Marys & Kingsland Georgia - Affordable Home Mortgages

Buying a home is usually the largest purchase any of... Read More

How To Save Money On Your Mortgage

Obtaining a home loan is arguably the most expensive transaction... Read More

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK

Add the term 'online' and it will open for you... Read More

Buy a Home With a Government Grant? Avoid this Scam

If you watch enough late night television, you'll see advertisements... Read More

Home Loans For People With Adverse Credit History

Whether you are planning to purchase a home for the... Read More

Home Mortgage Quotes Online - How Do They Compare To a Quote From a Broker in The Real World?

Online home mortgage quotes are very similar to the quotes... Read More

Finding the Best Homeowner Loans for Your Money

Looking for the best homeowner loans can be stressful, especially... Read More

Home Mortgage Interest Rates: How to Compare

Whether you are looking to purchase your first home, sell... Read More

Buying a House? How Much Home Can You Afford?

Maybe you've heard the expert advice that your debt to... Read More

Real Estate Finance Strategy that Few People Consider

If you are considering a new home loan anytime soon,... Read More

Stopping Foreclosures

If you as an investor understand the process, you will... Read More

FHA Mortgage: When Your Downpayment is a Gift

There has been so much fraud discovered in the FHA... Read More

How to Utilize Your Cash Investment in Your Home

Have you ever noticed how hard it can be to... Read More

Securing a US Commercial Mortgage

What's the most efficient way to secure a US Commercial... Read More

7 Credit Improving Steps You Must Take Before Applying For A Mortgage

If you think you have good credit, think again. Chances... Read More

Tips for Finding the Best Agri Mortgage and the Best Agri Loan

The Research Rates of Agri MortgageFirst thing, when finding an... Read More

Mortgage: Rehabilitation Of Financial Helplessness

The term 'mortgage' is assumed really controversial by people when... Read More

Shopping for a Mortgage, Avoid Three Common Mistakes

Buying a home or refinancing one is perhaps the largest... Read More

Bad Credit Home Equity Loans

A home equity loan allows you to borrow against the... Read More

Bad Credit Home Financing - Get The Mortgage Loan You Want Even With Poor Credit

Having poor credit alone cannot hold you back from getting... Read More

Home Loan Applications Made Easy

You have finally found the home of your dreams. You... Read More