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Are 40-Year Mortgages a Good Idea?

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Are 40-Year Mortgages a Good idea?

 

The primary advantage of adding 10 years to the traditional 30-year mortgage is that you will have smaller monthly payments. This is a very good idea if you are looking to hold onto your home for a shorter period of time. However, if you plan to stay in your home over a longer period of time, the drawback is of course the cost of additional interest payments, which can total thousands for a few dollars difference in mortgage payments.