Greg Cowart on Zillow
Greg Cowart - Mortgage Broker or Lender at The Securus Group
Greg Cowart - Roseville Loan Guy

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40 Year loans, bad mistake or a huge opportunity?

That’s right, the 40 year mortgage is coming back around. I’ve recently seen one of our wholesale banking partners offer a 40 year mortgage that is interest only for the first 15 years, then turns into a 25 year fixed so there is very little risk of the payment exploding and you would lose your house after the interest only period. I know I know. Conventional “wisdom” says this is crazy, all you will be doing for the first 15 years is paying interest, not paying the principal down one bit. With all those radio commercials we’re bombarded with every day telling us we need a 10 or 15 year mortgage I wouldn’t blame anyone for not seeing the opportunity…

However the best and brightest financial planners may tell you otherwise. They see a HUGE wealth building opportunity. NOT an opportunity to buy a house we can’t afford, but an opportunity to saveĀ A LOT of money and create TRUE FINANCIAL SECURITY for us and our families. I know it seems backwards, but it’s not. Now I’m not recommending this product for everyone, each and every individual has different needs, but only to bring up the fact that these loans are being offered and to let you know there is HUGE opportunity and benefits that come with it.

If anyone has any questions or comments, or wants to discuss proper mortgage planning please leave a comment or let me know.

~Greg

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