Hahaha. 40 year mortgage? Do you really think that you will live that long?

Ok, let me tell you my opinion on mortgages on long period. 40 year mortgage, 30, or above this period

First, it really helps to go for a long period, because you have smaller monthly payments.

Especially if you are in your early 20s, it helps to kick start your life. Make your calculations, have an optimistic scenario, a pessimistic one and an extra pessimistic scenario . And, if it sounds ok, go for it.

However, you must be aware that in the first years you are paying only interest, and no capital. So, if you can take a 40 year mortgage, be careful, because, on long run, it will cost you like hell. And do you thing the property you are buying it, in 40 years it will cost more then double? Francly, I doubt. Because houses, especially the american ones, are made of wood. So termites, weather, bad mantainance deteriorates the house. And in 40 years, the product lifetime is almost ended. Also, if you get a depression like this one, when prices are falling, it means you will lose tons of money. Or you live in a future chicago area, that will be hard hit by a recession. You can call you threw away money

A 40 year mortgage shold be repayed as soon as possible. Even after 3-5 years. This way, you will save tones of money, that otherwise will be spend for nothing. And also check the commision to reimburse in advance the credit. Also the contractual conditions… Otherwise you can have some nasty suprises. 40 year old mortgage could be an interesting and usefull tool, if you use it wisely.