Image of vintage house in the grass, garden or park at sunset light Source: AdobeStock.

Because of rising interest rates and higher home values, the monthly mortgage payment on a typical US home is 62% higher than a year ago. So, it’s only natural to be looking for a way to cut costs. But if you’re borrowing money to buy a home and think the answer to a cheaper mortgage is a longer-term loan, like 40-years long, think again.

The idea seems simple enough – just extend the life of the loan to save on monthly payments and refinance as soon as rates drop enough to make it worthwhile. Plus, a 30-year mortgage is a bit of a misnomer, as no one really keeps the same home loan for three decades these days. So why not just go for 40 years? There are many reasons not to play with the terms.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?

Dig Deeper


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.