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A helping hand: FHA greenlights 40-year mortgages

For many potential homeowners, the barriers to entry feel insurmountable. The FHA hopes that new 40 year mortgages will give more wiggle room.

A man and a woman signing a document with the guidance of a woman helping with mortgages.

Are you wondering how the heck you’re going to buy a house in the current market we’re plagued with? There may be more of a chance for you now; the Federal Housing Administration just gave 40-year mortgages a green light. The notion is designed to help eager buyers snag a home for the first time without feeling as much stress. 

Real estate agents in the Port Lucie, FL area support the idea, saying it’s a good thing if it can help get homes. The big idea is lower monthly mortgage payments, which we all know have risen as mortgage rates skyrocket. In the last year alone, mortgage payments have risen by nearly 30%, which is a painful $2,563 a month. That’s more than a lot of Americans make in a month in general. 

The truth is, homebuyers need lower payments right now to make buying a home worth it. Forty-year mortgages stretch payments out for much longer periods of time, making them more affordable. The last thing a lot of buyers want or need with our world being in the state it’s in is added feelings of hopelessness, so this can be huge for some. While it’s not the perfect fix, it can lift weight off the shoulders of many Americans. 

“It’s going to attract buyers struggling to put their money together for getting into a house, like a first-time home buyer, and it’s great because it saves them from wasting money on rent,” Sonsire Gonzalez, real estate agent, said

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Compared to 30-year mortgages, 40-year payments can be a couple hundred dollars less, of course, depending on how much the home is bought for/the interest rate. That may be just enough to give potential buyers and incentive to commit to the home. Is this good news? It’s a step in a less-stressful direction and is significant enough to help a lot of people who are ready to buy a home, especially since most don’t stay in one house for 30-40 years. What are your thoughts on 40-year mortgages?

Macie LaCau is a passionate writer, herbal educator, and dog enthusiast. She spends most of her time overthinking and watering her tiny tomatoes.


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