40 Year Mortgages

OneBetter · Joined: 04 Dec 2005 Posts: 1

In the last couple of weeks I have noticed that some wholesale lenders have been offering 40 year mortgages and was wondering if anyone has had experience with these types of loans.

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

Sovereign bank has offer them for many years btw. So it's not really all that new of a product.

Not much different from the conventional 30 year fixed rate mortgage although some of these 40 year termers are 40/30's.

In essence they offer a lower payment while still offering the security of a fixed rate note. There are even 2/38's and 3/37's out there though I haven't seen them come across as an interest only loan. I think many lenders would like to replace their I/O products with the 40 year term.

chow · Posted: Mon Dec 05, 2005 10:26 pm Post subject:

You think they want to replace those with 40 yrs. ??????

I don't think you're too far off that path-my friend. :wink:

macp · Joined: 13 Dec 2005 Posts: 8 Location: Phoenix

I have done a few and have had great success with them. For people who cant get interest only this is the way to go. The payments are pretty much the same but thy're paying on the pricpal. I have used WMC for this program. They also will do 100% second home with this program.