Is 40 the new 30?

40 year mortgages have a certain attraction to home buyers due to the lower payment from stretching out the payments those extra 120 payments may not save as much as you think. After you add the extra .25 to .375 percent increase in the interest rate causes the house payment to go back up. Before you jump on that longer mortgage term you need to compare the two products your loan officer is offering and make an informed decision about what would be best for you ad your family. The payment being cheaper by $50 does not offset that extra 120 payments.