oliver clotheshoffe
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 | | Subject: FHA approves 40-year mortgage for homebuyers beginning in May Sat Apr 08, 2023 7:56 am | |
|  The Federal Housing Administration announced it's increasing term options to include a 40-year mortgage in May.
Dan O'Connell, a Valley mortgage broker with OC Home Loans, works with people looking to buy homes or refinance.
"The short term is just that you're going to get a lower payment and a payment that you can afford," he said.
O’Connell said you may run into trouble if you choose to stay in your home, paying thousands more with current interest rates.
"You don't want to get into a situation where the payments too high that you’re house poor,” O’Connell said. “By doing a 40-year term, if the payment is now affordable, and you're worried 40 years is too long, I assure you that rates are going to get better."
It all comes down to what fits right for you and your family's budget, according to O'Connell.
"It's just that we're at a particularly tough time,” O’Connell said. “Right now, where it's kind of the perfect storm of really high prices and really high rates."
When it comes to adjustable-rate mortgages, O’Connell added, "The ARM pricing isn't significantly better than the fixed-rate pricing, so it hasn't been a viable option."
The 40-year mortgage goes into effect on May 8.https://www.abc15.com/news/state/fha-approved-40-year-mortgage-for-homebuyers-in-may |
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The Wise And Powerful
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| | Subject: Re: FHA approves 40-year mortgage for homebuyers beginning in May Sat Apr 08, 2023 3:07 pm | |
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