A 40-year loan is a long-term mortgage with smaller monthly payments than
shorter terms, but higher total interest costs, often used to improve affordability
by extending repayment over four decades.
PAYMENT COMPARISONS
$500,000 Loan Amount
5% Interest Rate
40 Year Fixed
$2,411/month
30 Year Fixed
$2,684/month
20 Year Fixed
$3,300/month