Homes are places to put down our roots, entertain and have sanctuary, but they can also be costly. One of the ways to make a house a little more affordable is lengthening the term, which is the central appeal of a 40-year mortgage. However, there are also some drawbacks to consider.
Although Rocket Mortgage® doesn’t currently offer them, we want to make sure you understand everything there is to know about a 40-year mortgage if you’re considering one so you can properly evaluate your options when getting approved for a mortgage. In this article, we’ll also run through some alternatives to a 40-year mortgage.
When buying a home one of the biggest factors is the mortgage loan you get to finance the purchase. Most home loans have terms of 15 or 30 years, but some lenders actually offer mortgages with longer repayment periods. So what is the longest mortgage term available?
Overview of Mortgage Loan Terms
The most common mortgage loan terms are:
- 15-year fixed-rate mortgage – Takes 15 years to pay off
- 30-year fixed-rate mortgage – Takes 30 years to pay off
- Adjustable-rate mortgage (ARM) – Has an initial fixed period of 3, 5, 7 or 10 years before the rate becomes variable
Shorter loan terms mean you pay the loan off quicker, but your monthly payment is higher. Longer loan terms have lower monthly payments but higher interest costs over the full repayment period.
Most lenders only offer mortgages with 15- or 30-year terms But there are some specialized mortgage products with even longer terms.
What is the Longest Mortgage Term?
The longest mortgage term currently available is 40 years. However, 40-year mortgages are fairly rare and can be difficult to find.
Here are some key facts about 40-year mortgages:
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Lower monthly payments – Spreading the loan balance over 40 years results in a lower monthly payment compared to shorter terms. This improves affordability.
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Higher interest costs – Even if the interest rate is the same as a 30-year loan, you’ll pay significantly more interest over the 40 year term.
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Difficult to obtain – Only a small number of lenders offer 40-year mortgages. They aren’t conventional loans backed by Fannie Mae or Freddie Mac.
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Used for loan modifications – Banks mainly use 40-year terms when modifying existing troubled loans to make payments more affordable.
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Riskier features – These loans sometimes have balloon payments or interest-only periods, increasing the risk for borrowers.
While 40 years is currently the longest term available, even longer mortgages have existed in the past. For example, during the 1980s some lenders offered 50-year mortgages before they were essentially phased out.
What are the Pros and Cons of a 40-Year Mortgage?
Below is a quick rundown of the main advantages and disadvantages of choosing a 40-year mortgage term rather than a more standard 15- or 30-year loan:
Pros
- Lower monthly payments
- Increased purchasing power
- Temporary payment flexibility with interest-only periods
Cons
- Much higher interest paid over the loan term
- Slower equity accumulation in the home
- Potentially riskier loan structures
- Difficult to find lenders that offer this term
- May have higher interest rates than shorter terms
While a 40-year term seems attractive for the lower monthly costs, you really need to weigh whether the higher long-term expenses are worth it. For many borrowers, a 30-year mortgage at a competitive rate makes more overall financial sense.
Who Offers 40-Year Mortgage Loans?
Since they are non-conventional mortgages, only a limited number of lenders provide 40-year home loans. Here are some places borrowers can look for these long-term mortgages:
- Small local and regional banks
- Credit unions
- Online lenders and mortgage brokers
- Portfolio lenders who keep loans on their own books
Big national lenders like Wells Fargo and Chase generally don’t offer 40-year mortgages. Even with the right lender, applicants typically need a good credit score and sufficient income to qualify.
Alternatives to a 40-Year Mortgage
If you need to lower your monthly costs, here are some alternatives to consider rather than an ultra long-term mortgage:
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30-year fixed-rate mortgage – While payments are higher than a 40-year loan, a 30-year mortgage provides stable costs over decades. Rates are also very low right now, improving affordability.
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Adjustable-rate mortgage – ARMs offer low initial rates lasting 3-10 years. This keeps payments down before the rate starts adjusting.
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FHA, VA and USDA loans – These government-backed mortgages have flexible credit requirements, low or no down payment options and competitive rates to aid affordability.
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Buying a less expensive house – Opting for a lower priced home allows you to qualify for a shorter, more cost-effective mortgage term.
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Paying discount points – Paying a fee upfront reduces your interest rate over the loan repayment, which lowers monthly payments.
For many home buyers, these alternatives can provide better long-term value than committing to a 40-year mortgage. But buyers should assess their unique financial situation and mortgage needs.
The Bottom Line
While uncommon, it is possible to obtain a mortgage with a 40-year repayment term – the longest currently available. This results in more affordable monthly payments but much higher total interest costs over the decades-long loan. Most borrowers are still better off choosing a standard 15- or 30-year mortgage at competitive rates. But in certain circumstances, a 40-year mortgage may make sense for some buyers.
How does a 40-year home loan work?
These home loans can be fixed-rate mortgages, where your mortgage payment stays the same every month before accounting for property taxes and homeowners insurance. They may also be adjustable-rate mortgages (ARMs). These remain fixed at a lower rate than you can get on a typical fixed-rate mortgage for a set number of years at the beginning of the loan before adjusting up or down based on an index and margin after several years.
A 40-year mortgage may be refinanced into another term at a later date.
These 40-year terms appeal to some because a longer time to pay off the loan means a smaller monthly payment. Depending on the mortgage lender, you may qualify for a lower down payment.
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What Is Longest Mortgage Term? – CreditGuide360.com
FAQ
Do 50 year mortgages exist?
Like its cousins the 15- and 30-year mortgages, the 50-year mortgage is a fixed-rate mortgage, meaning the interest rate stays the same for the (long) life of the loan. You’ll pay both principal and interest every month, and…if you’re still alive at the end of your 50-year loan period, you’ll officially be a homeowner.
Will banks do a 40-year mortgage?
Mortgage loans with 40-year terms are typically only available from portfolio lenders, which are lenders that keep some or all of the loans they originate …Apr 11, 2025
Can an 80 year old get a 30-year mortgage?
Does anyone do 40-year mortgages?
Yes, it’s possible to get a 40-year mortgage — but it’s not as simple as getting a more traditional 15- or 30-year loan. 40-year mortgages aren’t a common option for borrowers in good financial standing who are simply looking for a longer loan term on a new purchase.
What is the longest term a mortgage can have?
What is the longest you can have a mortgage? The longest mortgage term available in the United States is 50 years. Like the 15- and 30-year counterparts, 40- and 50-year mortgages are available as both fixed and adjustable rate loans.
How long does a 30-year mortgage last?
The average length of a mortgage is 30 years, but that’s not the amount of time that most borrowers will keep the loan. The typical U.S. homeowner has a tenure of about 12 years, and many refinance their home loans. So most folks will sign up for a 30-year mortgage but keep it for a far shorter time. Why 30 years?
How long should a mortgage be?
The mortgage length you end up choosing will ultimately be up to you and your finances. Some can handle the higher monthly payments of a 15-year loan, while others will need 30 years to pay it off. When deciding what mortgage length is right for you, be sure to take into account factors like monthly payments and interest rates.
How long does a fixed rate mortgage last?
A fixed rate mortgage has a fixed term of 10 years. Regardless of changes in the market, the rate remains the same throughout this period. The most common loan term in the United Kingdom is a 25-year loan.
How long should a 15-year mortgage last?
Some can handle the higher monthly payments of a 15-year loan, while others will need 30 years to pay it off. When deciding what mortgage length is right for you, be sure to take into account factors like monthly payments and interest rates. Make sure your credit score is in good shape.
Can you get a 10 year mortgage?
While the most common and widely-used mortgages are 15- and 30-year mortgages, home loans are available in various payment terms. For example, a borrower looking to pay off their home quickly may consider a 10-year loan. Can you do a 50 year mortgage? Fifty-year mortgages are home loans designed to be paid off over 50 years.