The Program:
    
A. Principal Amounts Offered - $100,000 to $5,000,000. This program is usually offered to both "Conforming" and "Jumbo" size loans so just about any consumer's loan can be considered.
    
B. Interest Rate Options - This program is currently offered in both a "Fixed" Interest Rate and "Adjustable" Interest Rate loan. The "Fixed" Rate is usually very competative with the 30 Year "Fixed" Rate loan program. The benefit of the longer term is that is lowers the monthly payment since the loan is amortized over 40 years instead of 30 years. However, that also means that the borrower must pay more in interest since the loan is 10 year longer. The "Adjustable" Rate 40 Year Loan Program usually has 4 different Interest Rate Options. There are 2 Sections to the Interest Rate Options available. The 1st. Section is a FIXED Interest Rate for a certain number of years. The 2nd Section is an ADJUSTABE Interest Rate for the remaining years of the loan. Option #1 is a 1 Year FIXED Rate with monthly adjustable rates after the first year. Option #2 is a 3 Year FIXED Rate with monthly adjustable rates after the first 3 years. Option #3 is a 5 Year FIXED Rate with monthly adjustable rates after the first 5 years. And Option #4 is a 7 Year FIXED Rate with monthly adjustable rates after the first 7 years. ( This Option is not always available.)
    
C. Term - This mortgage is offered as a 40 year loan with the monthly payment amortized over a 40 year period. This lowers the monthly payment, but of course increases the total amount of interest paid over the life of the loan since you will be paying interest for 40 years instead of 30 years.
    
D. Consumer Credit Scores - This program can usually be applied to Consumer's with Excellent down to Poor credit with adjustments of the interest rate for lower credit scores.
    
E. Points - Sometimes, this program will allow the consumer to pay "points" up front at closing to get the interest rate even lower than is offered. Each point would represent 1% of the loan amount so that a Consumer who wants to borrow $100,000 would paid $1,000, or 1 point, up front to get the interest rate lowered. How much lower is a function of the current market conditions. Some offer a rule of thumb of 1 point =.25% lower rate.
    
F. Closing Costs - This program usually has the same closing cost as regular mortgage loans. Sometimes you can add the closing cost to the Principal Amount of the Loan so that you do not have to expend funds out of pocket at closing.
    
G. Sample Monthly Payments - Because this Mortgage Program extends the term of the loan, the monthly payments are lower than the 30 year loan. This would benefit borrowers who need the lower monthly expense now with the possibility of being able to handle a higher monthly payment down the road, or borrowers who only expect to stay in the home for 1, 2 or 3 years and want the lowest monthly cost during that period of time. Another benefit of the 40 Year Program is that the borrower can elect either a "Fixed" or "Adjustable" Interest Rate. And, if the "Adjustable" Rate Loan Program is selected, can chose any one of four different monthly payments he or she wishes to pay. The smallest payment is know as the MINIMUM Monthly Payment and is smaller than an Interest Only payment. However, it may add pricipal to the balance of the mortgage which is know as Negative Amoritization. Then there is the INTEREST ONLY monthly payment which does not require a Principal payment. Next the borrower can make a regular Interest and Principal monthly payment or lastly can make a larger Principal monthly payment to reduce the outstanding Principal due on the loan faster than the 40 year term. The borrower has the option each month to make which ever of the 4 monthly payments he or she wishes to. And can change the monthly payment each month if desired. So you can see that the 40 Year Loan Program has a lot of options so the borrower can manage his or her monthly payments as their economic situation varies. Please visit 40 Year "Option" Adjustable Rate Mortgage Program    Here are samples of the 30 year monthly payment vs. the 40 year monthly payment:
     

    
H. Comparing the 40 Year Mortgage to 30 Year Fixed and Adjustable Mortgage Loans - We are using "SAMPLE" interest rate in this comparison, which are NOT current interest rates, only examples of how the 40 year would compare in payments to other mortgages.
      

    
Here is a breakdown of the principal amounts you will owe at the end of 1,2,3,4,5,10 and 20 years so you can determine if the 40 year is the right mortgage option for your particular situation.
     

    
If you would like to start the process of applying for a 40 Year Mortgage Loan for either a new purchase or to re-finance an existing loan, you need only call 561 479-4902, option #1, or go to the 40 Year Application
    
For complete details and current interest rates e-mail :
40Year@Mortgage2USA.com 
or use our "Visitor Info Request Form".     
Note: All information and data on this page and this web site has been obtained from dependable and recognized sources which we believe to be reliable. However, no data has been directly verified by us and cannot be guaranteed for accuracy or completeness. Every effort has been make to avoid errors. This information is for informational purposes only and cannot be construed as an offer to buy or sell any securities or mortgages. United States Holding Corporation is not a Mortgage Company or Broker and only refers visitors to this site to mortgage professionals. All data is subject to change and availability and current interest rates always vary on a daily and sometimes hourly basis.