Those of you who are looking to buy a home and obtain a mortgage in the next little while need to know there's a NEW option: a 40-year mortgage. This change could allow you to enter the housing market and have an affordable mortgage.
Be wise, ASK your mortgage representative lots of questions . It's still valuable to set your mortgage payments higher then she/he might recommend. Try an amount a little high while ensuring you still have remaining income to live comfortably. You might not want to spend 40 years paying off a debt.
Also, have the rep show you the difference in "borrowing costs" between 2 or 3 payment amounts. There is a lot of interest to pay over 40 years and the cost of borrowing could equal buying another house.
On the up side, many in your generation will receive an inheritance that could help pay those mortgages off sooner than later. Be wise, don't plan on it.
Finally at least the mortgage payments will be doable. Finally good news for you folks!
Remember, you can review your options by booking an appointment with FFC
