Most mortgages have a term of 15 or 30 years. However, if you want to buy a more expensive house than you could afford with one of those loan options, you might be able to purchase your dream home with a 40-year mortgage. You could have a hard time finding such a loan, though, and you would pay more over the term of the mortgage.

How Does a 40-Year Mortgage Work?
There are several variations on the 40-year home loan. Lenders may offer one or more versions. Most have a fixed interest rate, but some have an adjustable rate. The interest rate for a 40-year mortgage is often higher than it is for a 30-year loan. Some 40-year mortgages have interest-only payments for the first several years, while others have low monthly payments and a balloon payment due at the end.

Costs and Equity With a 40-Year Mortgage 
Since a 40-year mortgage spreads out the cost of a loan over a longer period of time than a traditional mortgage, it has lower monthly payments. That could make a 40-year mortgage a good option if you want to keep your monthly payments as low as possible or if you want to buy a more expensive home.

You will pay more in interest with a 40-year mortgage because it will have a higher interest rate and you will be paying interest over a greater number of months. You can also build equity more slowly with a 40-year loan. If you decide to sell your house before you pay off the mortgage, you might have little equity, even after living there for several years.

Is a 40-Year Mortgage Right for You?
If you are considering a 40-year mortgage because you want to buy an expensive house and you can’t afford the monthly payments for a 30-year loan, you may be better off purchasing a less expensive house and taking out a smaller mortgage with a shorter term. If, on the other hand, you want to buy a house in an area where average home prices are high overall, a 40-year mortgage might be a better option.

Be sure to carefully consider the terms of each specific loan. For instance, if you take out a 40-year mortgage with a balloon payment and you’re unable to pay the large sum, you could lose your home. 

How to Find a 40-Year Mortgage
A qualified mortgage meets standards that the Consumer Financial Protection Bureau has set to make sure that borrowers are only approved for home loans that they can afford to repay. A qualified mortgage may not have a term longer than 30 years. 

A 40-year mortgage is an unqualified loan. Many lenders consider unqualified mortgages riskier than qualified mortgages and do not offer them. You may be able to find a 40-year mortgage through a small private lender or a credit union. Before you take out a 40-year mortgage, check the lender’s background to ensure it is reputable.

There’s a smart version for just about everything these days. From washing machines to thermostats and home security systems, chances are you’re familiar with the vast majority of the latest home technology available. Yet, there are still plenty of lesser-known smart devices that you can bring into the house to make it more efficient and deliver peace of mind. Following are several such pieces of tech that anyone can appreciate.

 

 

Smart Plugs
With a smart plug, you’re able to turn anything that’s plugged into it on and off using your phone or voice commands. At first, you might ask why someone would ever need that. However, if you have an antique lamp, for example, that uses one of these plugs, you can essentially make it a smart lamp and take control of it from wherever you are.

Smart Switches
You’re probably already familiar with smart light bulbs, but another solution for remotely controlling the lights in your home is to install smart switches. With a smart switch, you don’t have to worry about getting new smart bulbs every time one burns out, but you still enjoy all of the advantages, like voice and mobile control, so you can turn the lights on before you enter the house at night.

Smart Garage Door Openers
There’s nothing more unsettling than realizing that you forgot to close the garage door before leaving the house. Fortunately, smart garage door openers solve that problem by allowing you to open and close the door with your smartphone. They also recognize when you pull in the driveway, so the door automatically opens upon your arrival.

Smart Water Detectors
The consequences of a water leak can range from a steep monthly bill to a totally destroyed home. Either way, it’s never a good thing. A smart water sensor can detect if there are any leaks in your house and automatically shut the water off before it causes damage. While this is a practical piece of technology for any residence, it’s especially useful for second homes where you might not be around to notice when a leak starts.