Loans for 30, 40, 45, or 50 Years

Mortgage loans used to be for 30 years.

Lenders have introduced many new innovative loan programs to help you stretch your dollar.

At a time when interest rates have been generally increasing, mortgage payments have also been increasing. As interest rates rise the average monthly mortgage payment also increases.

In a higher interest rate environment lenders can offer longer loan terms. A longer loan term means a lower monthly payment for the same loan size.

Lenders are starting to offer loans for:

40 year mortgages
45 year mortgages
50 year mortgages
It is important to note that this is the total number of years in the loan term. This is not the same as the number of years the loan will be fixed.

For example, a 40 year loan may only be fixed for 30 years. After the 30th year the loan will be adjustable. For many people a loan that is fixed for at least the first 30 years is fine.

An example of a loan of how the loan's payment changes begins with a:

$300,000 loan
6% interest rate
A 30 year loan will have a payment of $1,798.65 per month.

A 40 year loan will have a payment of $1650.64 per month.

A 45 year loan will have a payment of $1,608.85 per month.

A 50 year loan will have a payment of $1,579.21 per month.

A 50 year loan costs $219.44 less per month than a similar loan for 30 years. This lower payment is an annual reduction in payments of over $2,400.