What's the big deal between these two loan products?

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. 

Watch the original video HERE!

Book a call with Scott HERE!

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