According to an article on MSN Money, 40-year mortgages are about to become mainstream.
Forty-year mortgages have lower monthly payments than their 30-year cousins, although they cost more over the life of the loan because the borrower pays interest for 10 years longer. With the lower monthly payments, they are seen as a tool to allow people to buy homes that are unaffordable with 30-year mortgages.
The economy seems to be becoming more creative in order to find ways unaffordable houses can pretend to be affordable.
Updated February 6, 2012 and originally published June 14, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.