40-Year Mortgage Gaining Proponents

(July 3, 2006) -- The 40-year mortgage is gaining moment, says Keith Gumbinger, vice president of financial industry research and publishing firm HSH Assoc."These loans have really come back in the last six, seven months," Gumbinger says. "And for certain borrowers, they can help improve affordability."The payment difference between a 30-year mortgage and a 40-year mortgage isn’t huge. For instance, a $300,000 loan at 6.5 percent, amortized over 30 years, costs about $1,896 per month, while the payment for a 40-year loan is $1,756.

Source: The New York Times, Bob Tedeschi, 07/02/2006)