Introducing 40-Year Mortgage Loans

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4.2.24

Introducing 40-Year Mortgage Loans


Purchasing a home or refinancing can be tough in today's market. However, at Provident, we're committed to making homeownership achievable by introducing our new 40-year mortgage, available on our Fixed/Adjustable Mortgage loans.230 We've gathered some information about 40-year mortgages to help you determine if it's right for you.

What is a 40-year mortgage?
A 40-year mortgage loan functions similarly to a standard loan but with a longer repayment period, leading to reduced monthly payments.

Advantages of a 40-Year Loan

  • Lower Monthly Payments: Extending the loan term lowers your monthly payments compared to a 30 or 15-year loan with the same interest rate and down payment.
  • Expanded Home Search: With a 40-year loan, you gain increased purchasing power, enabling you to secure your desired home.
  • Ease on Monthly Budget: Having a lower monthly payment on your mortgage provides additional flexibility within your monthly budget.

Drawbacks of a 40-Year Loan

  • More Interest Paid: Due to the extended loan term, you'll end up paying more in interest over the loan's lifespan compared to shorter-term loans.
  • Build Equity Slower: In the early years of the loan, a larger portion of your monthly payment goes towards interest. With a longer loan term, the reduction of your principal loan balance occurs at a slower pace than with shorter loan terms.

We encourage you to assess your financial goals and circumstances carefully before deciding whether a 40-year mortgage aligns with your homeownership objectives. At Provident, we're here to guide you through the mortgage process and help you make informed decisions that suit your needs. To explore your mortgage options and take steps towards achieving your homeownership dreams, reach out to our team today at (800) 632-4600, option 1-2703.

Fixed/Adjustable Movable Mortgages

APRs are based on a loan amount of $550,000.

Rates are valid as of and are subject to change.

Term in Years Discount Points Interest Rate APR Payment per $1,000 Disclaimers
5/530 Years 0.000% 6.375% 6.187% $6.24 CC, DD, EE, FF, S
1.000% 6.125% 6.184% $6.08
5/540 Years 0.000% 6.5% 6.204% $5.85 CC, DD, EE, FF, FFF, S
1.000% 6.25% 6.199% $5.68
7/2330 Years 0.000% 7.75% 7.328% $7.16 CC, DD, EE, FF, S
1.000% 7.5% 7.295% $6.99
10/1030 Years 0.000% 7.75% 7.274% $7.16 CC, DD, EE, FF, S
1.000% 7.5% 7.203% $6.99
10/1040 Years 0.000% 7.875% 7.227% $6.86 CC, DD, EE, FF, FFF, S
1.000% 7.625% 7.159% $6.67

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