The New 40 Year Mortgage!

The New 40 Year Mortgage!

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Who can actually apply for the new 40 Year Mortgage? What is its purpose and what impacts will this new mortgage have on the Real Estate Market? Support Our Channel: Please Subscribe! or Shop our Swag: The 40-year mortgage approved by the FHA and HUD is only for borrowers who are in default and is a way for the government to stem foreclosures. The minimum target on these loan modifications is a 25% reduction in the principal and interest portion of the mortgage. Switching a 30-year mortgage to a 40-year mortgage may not achieve the goals of these loan modifications, as the term of the loan by itself may not be enough to achieve a 25% reduction. A 40-year mortgage could be good for an investor focused on cash flow, but for a homeowner, it might not be the best option. The 40-year mortgage being approved as an official use makes these mortgages qualified mortgages, which could have a significant impact on the potential change in the market.