You’ve heard of a 15 year mortgage or a 30 year mortgage. That was the norm. Now there are 40 year and 50 year mortgages. What is the difference and what would make someone consider a 40 or 50 year mortgage? Explanation of different types of loans may be found at http://www.eloan.com and http://www.bcsalliance.com/types_of_loans.html are beginner sites I would recommend. Before you sign on the dotted line, do your research regarding all the different options. Which term would you be saving the most money? I would venture to say if you can do it comfortably, you will save the most with a 15 year mortgage. However, most people start with a 30 year traditional fixed-rate mortgage. I would not even consider a 40 or 50 year mortgage. You will pay an enormous amount in interest doing one of these types of mortgages. That is money you could have saved by doing a smaller amount of years. Before someone says you can get into that home with a 50 year mortgage, weigh all the options and your finances. Look at the big picture, not the immediate present. If you take a 40 or 50 year loan, it could out live you.
