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Is Refinancing into a 40 Year Mortgage Right for You?

  An affordable mortgage payment is a vital aspect of personal finance. With interest rates near historic lows and home values spiking across the country, many consumers are considering mortgage refinancing. The decision to refinance your home can be complicated by various home loan choices. Refinancing into a 40 year mortgage is among the options that may be suitable for you depending on several factors. With best practices drawn from Elliott Broidy, here are some positive and negative attributes of a 40 year home loan. Pros: Yes, a 40 year mortgage can greatly reduce your monthly payment. Since your mortgage balance is paid over a longer term, a smaller mortgage payment will result. Real estate investors such as Isaac Toussie may prefer 40 year mortgages as leverage for low payments on properties that are being developed for future sale or lease. Homeowners who intend to sell their houses in the near term may also consider 40 year mortgages for similar reasons. Since home prices are dynamic, these consumers should also be prepared for declines in equity that may require out of pocket expenses to sell their house. A longer home loan can help you stay in or buy a home ...

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