The Federal Housing Administration has recently announced an expansion in its term options, now including a 40-year mortgage as a viable option.
Most Mortgage analysis agree that it is a great solution for those looking to buy or refinance a home. By choosing a 40-year term, homeowners can lower their payments and avoid becoming house poor. Although some may worry about the length of the mortgage, rates are predicted to improve over time. Ultimately, it is crucial to select the mortgage option that best suits your family's budget.
At this time, with high housing prices and interest rates, the 40-year mortgage is a particularly attractive option compared to adjustable-rate mortgages, which are not significantly better in terms of pricing.
This new mortgage option will become effective on May 8.
