No heirs - just want low payment. Has anyone had experience with 40/50 yr loans?

Answer 1

yes, they take forever to pay off.

Answer 2

i can tell you that a 40 or 50 year loan (good god) does not lower your payment substantially, but raises the amount paid in interest by an unbelievable amount. Better bet for you is to get an interest only loan for the first 10 years, and then see what your situation is. You can always refi at that point. Take a 30 yr fixed. Payments work out usually to be a little less on the interest only, and the interest rate is also usually a good bit lower.

Answer 3

When I have looked at the monthly payment differences between 30, 40 and 50 year loans, it is not that much different. The loan I most recently reviewed, the difference between 30 and 40 year payments was about 7 dollars.

Go to one of the online calculators and do the math. Depending on the amount you need to finance, I think you will find the difference between these payments is negliable.

Answer 4

The difference in monthly payments for a 30 year loan, and 50 year loan are minimal. That is because in a 30 year amortization, you only pay off 1% of the loans value in the first year. For a 120,000 loan that means that $100 of your monthly payment is going to pay off the principle, the remainder is all interest (in the case of a 6.5% loan, that would be 650.00 in interest) Switching to a 40 year loan, will only lower your monthly payment by about $30 a month.

Answer 5

You pay almost as much per month on 40 or 50 year mortgages as on 30 year mortgages, but pay an extra 10-20 years. Check a mortgage calculator online, and be sure you realize just how much extra you will pay total for that small monthly savings.

Answer 6

they're pretty good...but the interest only payments can be a lower