40 year loans - is it a good idea?

[Joe Frank]

If my wife continues to work full time we can pay off our home in 2 years but she may have to work less than full time due to health reasons and there is also the possibility she might have to stop working to care for her mother. We are trying to plan out strategies how to continue paying off our home if she works less or must stop working for a few years.

If we can get a 40 year loan the mortgage payments will be about 2/3 or less of our current payment. We would not feel at risk for problems being able to afford the house . If she must stop working we would move into her mother’s home and would rent out our home. Rent would cover all expenses- taxes, mortgage, Gardner, maintenance,insurance and property management if necessary.

Her mother’s home would require a $700 mortgage payment from us. Her mother would pay all utilities.

Once the house is paid off we want to start investing in real estate.

What are your thoughts? Is this a good idea? Do you know of any lenders that have 40 year loans? Thank you

[Cody L.]

I’ve nevrr seen a 40 year but IMO longer is always better (giggity!)

You can make a 40 year a 30 (or 20, or 5) year loan by simply paying more if you wish. The opposit is not possible. 

I assume, however, that if a 40 is offered it’ll come with some other trade off (more difficult underwriting. Higher rate. Etc. because who would want to be the lender of 49 year debt?)