30 year would be better if you can afford it. Spreading your payments out another 10 years would just increase the amount of interest you would pay. Where are you looking to buy?Nic Nethertonwww.nicnethertonloans.com

40 year rates are generally higher than 30 year rates, so the added interest and higher rate don't end up saving you much at all. Stick with the 30.

Payment would be lower because it is a longer term, BUT the savings may not be worth it long term beacuse a) you are spreading your payments out another 10 years which equals more total interest paid and b) in most parts of the country the 40 yr is considered a specialty product and the rate is higher than a 30yr. Give a call if you want to discuss in detail.... Casey 262.264.5462

The wise choice would be to go with a 30 year fixed rate and try to get your rate as close to 4% as possible. Were you considering an FHA loan? We are Nationwide Direct Lenders and would love to give you a FREE quote. www.mortgage-FHA-Rates.com

Fran, mortgage rates are based in large part due to the demand on the secondary market for the loan once it's bundled with other mortgages. There is not much of a market for 40 year mortgage backed securities, hence the increased rate. So, I agree with my peers. Unless it is the only way that you ca get into a home,I wouldn't advise it. Even then, you might be better off doing what you can to get a lower payment using a 30 year fixed. Can you get a rate buydown? What are a 5/1 ARM? There are a lot of other options that can be considered, based upon your unique situation. You really need to get the advice of a mortgage professional in your area whom you can trust and who will look out for your interests.

We have 40 year term at 30 year rates & fees. Although, I would not recommend this, primarilly because the loan will amoratize much slower. We both know you won't have this loan 40 years. So, the downside for you is it will have a higher balance than a 30F, when you refinance or sell. .... Happy funding, Rudi