The only company that has this many national banks competing for your loan:
  • Countrywide
  • Wells Fargo
  • Washington Mutual
  • Deutsche Bank
  • Thornburg

Benefits of a 60 Year Mortgage ...

There have been many rumors about a 60 year mortgage that will come to the market. Today there is only a 40 year mortgage product that can compare to the traditional 30 year mortgage product that has been used for so many years.

The 40 year mortgage would work the same way a 60 year mortgage would work except for the obvious you would loose 20 years in amortization. However you do have many options today. Fannie Mae just approved the 40 year mortgage in 2005 and the talk of a 60 year mortgage could be on the way next if history repeats itself. Not so long ago in the 1960’s your normal amortization period was 20 years not 30 as it is today. As the banks try to come up with more ways to lend the consumer money a 60 year mortgage might make sense.

Many consumers believe that a 60 year mortgage would lower their payments tremendously when in fact the savings is not that much. For instance if you borrowed $200,000 at an interest rate of 6% for 30 years your monthly principal and interest would be $1,199. That same loan for 60 years would be $1,028 and for 40 years $1,100. The savings of the 30 year vs. the 60 year mortgage is only $171 per month.

If the lowest monthly payment is what you are looking for then you should consider the interest only mortgage vs. the 60 year mortgage. For instance a $200,000 loan for 30 years is $1,199 a month for principal and interest, the same loan interest only would be $1,000 a month for the interest only portion. There are many options today for interest only loans, there are fixed rates and adjustable. A popular today is the 30 year interest only loan that adjust to a fixed rate after 10 years. This helps keep the payments down when your earning potential may not be the same in the future. It also allows consumers to borrow more money so then can afford the larger home they need.

There are many other options to consider as opposed to the 60 year mortgage. Simply fill out the two step process to see which options may be best for you…30 year fixed, interest only or maybe the 40 year fixed.