mortgage

What is a 40-year mortgage?

 

 

What is a 40-year mortgage?

The Bankrate.com financial term of the day is: "40-year mortgage."

A 40-year mortgage is a 30-year mortgage cut into smaller portions. It's a home loan that stretches the repayment schedule over four decades, instead of the traditional three, spreading the principal over more payments, which are lower than they'd be with a 30-year loan. A 40-year mortgage can come with either a fixed or an adjustable interest rate.

With a 40-year mortgage, a borrower can buy more time -- and a reduced payment.

To find the best mortgage rates, visit the rate tables at Bankrate.com.

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