40 Year Mortgage Loan
With a 40-year term mortgage, you get lower, more affordable monthly payments, making it easier for you to achieve the dream of homeownership.
This product may be right for you if you are a first-time or trade-up borrower living in an area where high home prices and affordability are issues. In addition, this mortgage may help you achieve your overall financial management goals. For example, you can use the difference in monthly payments to pay off higher-cost debt, or save for investments.
Is This Mortgage Right for You?
The Credit Union can help you evaluate if this mortgage is right for your specific circumstances. If one of these situations describes you, this mortgage might be a good fit:
- You would like to keep your monthly mortgage payments down
- You have other financial obligations at higher interest rates that you would like to pay down, or you would like to optimize your investment strategy.
How the 40-year Mortgage Works
With this mortgage, your repayment schedule is calculated over a 40-year period (480 payments). As a result, your monthly payment will be less than what it would be with a standard 30-year (360 payments) fixed-rate mortgage. This example illustrates the difference in payments:
| 40-year | 30-year | |
|---|---|---|
| Loan Amount | $150,000 | $150,000 |
| Interest Rate | 6.75% see below1 | 6.50% see below1 |
| Monthly Payment | $905 | $948 |
| You will save $43 each month with the 40-year term compared to the 30-year. |
1 For illustrative purposes only; interest rate for the 40-year Mortgage may be slightly higher than for a 30-year fixed-rate mortgage. In addition, please note that you will pay more total interest over the life of a 40-year loan, versus a 30-year loan, assuming you keep the loan for the entire period.
For current rates, APR information, and full product details, please contact us at 1-800-336-0284 to speak with a mortgage-lending specialist.
