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.