| Many of my clients keep asking me about the 40 year | | | | is because the 40 year mortgage usually comes with |
| mortgage and the 80 20 mortgage and while these | | | | a slightly higher interest rate than the more |
| two kinds of mortgages are similar in many ways, they | | | | conventional 15 or 30 year mortgages and when you |
| are also very different as well. The 40 year mortgage | | | | compare the two the 40 year mortgage only beats |
| is supposed to lower your monthly mortgage | | | | out the more conventional mortgage loans by a small |
| payments while the 80 20 mortgage will increase your | | | | difference. You need to be careful to run the numbers |
| monthly payments because of the addition of the | | | | before you decide on this mortgage product as many |
| second mortgage. Both the 40 year mortgage and the | | | | times the cost savings it provides are a bit of an |
| 80 20 mortgage are fairly extravagant mortgage | | | | illusion. |
| products that will only be utilized by a minority of home | | | | The 80 20 mortgage is different from the 40 year |
| buyers across the nation. Despite this, they are both | | | | mortgage in that its loan term is for more traditional |
| growing in popularity at a tremendous rate and it is | | | | time periods such as for 15 or 30 years and not 40. |
| always best for any home buyer that may be thinking | | | | The 80 20 mortgage essentially allows a person to |
| about either product to first become educated about | | | | come up with one hundred percent financing for their |
| its fundamentals before any action is taken. | | | | home purchase by allowing them to take out a second |
| The 40 year mortgage is actually not that difficult to | | | | mortgage on the property for up to twenty percent of |
| understand and it is really what its name entails it to | | | | the price of the home. This will give the home buyer an |
| be-a 40 year mortgage product that is instead made | | | | 80 percent first mortgage, and a 20 percent second |
| for 40 years instead of only 15 or 30. The 40 year | | | | mortgage on the property, and for many home buyers |
| mortgage is supposed to give people a lower monthly | | | | this is exactly the kind of financing they need to |
| payment due to the extension of the repayment term | | | | purchase their home. Do your homework on whatever |
| and it does deliver in this regard if you look at it from a | | | | mortgage loan product you end up going with and in |
| certain angle. While it does lower a person's monthly | | | | the end you won't get deceived and you'll walk out of |
| payment by a certain amount, it often does not lower | | | | the closing with a smile on your face. |
| it by a significant amount after all is said and done. This | | | | |