We've all heard how expensive it is to buy a home in this crazy market. There is some discussion among policymakers and politicians to make the dream of home ownership more affordable by making the 40-year mortgage a common practice. Banks and government entities like Freddie and Fannie have often used a 40-year mortgage as a way for lenders to avoid borrowers going to foreclosure by stretching out the payments.
What are the differences between a 30 and 40-year mortgage? Is there a big difference in monthly savings? Will more people be able to afford homes? Does it make a huge difference for the average American? Do note buyers like this idea? In this episode, Scott Carson breaks down the numbers on an apples vs apples basis and you'll learn: -When and how the 30-year mortgage became common. -The difference in monthly payment between the two terms. -The difference in mortgage balance in 7 & 10 years between the two. -How much do you need to make annually to afford either loan product on the same home? -How much equity will you build over 7 & 10 years given a constant rate of home appreciation? -How note investors adjust their bids when buying longer-term mortgages.
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By: We Close Notes Title: What''s the Difference Between a 30 and 40 Year Mortgage? Sourced From: www.youtube.com/watch?v=1GSvA-c6PfA
