The New 40 Year Mortgage!

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: https://shop.weareallcavemen.com/ 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.