Good
news for many new borrowers, Fannie Mae has announced that they
will now begin purchasing 40 year mortgages. What this
means is that many lenders will now offer a 40 year mortgage
term as an option to reduce their monthly payments. A 40
year mortgage term can increase affordability by reducing the
mortgage payment by extending the term 10 years longer than a
traditional 30 year mortgage term. A 40 year mortgage term
may also help you bring your debt-to-income ratio down which
improves your chance to qualify.
