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.

Home Buying Webinar

5/23/2024 12:00 - 1:00 PM

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Features

Interest rate may change during the life of the loan.
Monthly payments may increase or decrease based on interest rate changes.

This may make the difference in being able to afford your first home or upgrade to a bigger home. Don't give up the security of a fixed payment during the first years of the mortgage.

We’re here to answer your questions and help you understand your options. Call (800) 632-4600, option 1-2703.

Mortgage	Period of Fixed Rate	Period of Adj. Rate	Adjustment Frequency
7/23	7	23	Every 12 Months
5/5	5	25	Every 5 Years
30-Year 10/10	10	20	Every 10 Years
40-Year 10/10²³⁰	10	30	Every 10 Years

Fixed/Adjustable Mortgages

These loans offer a low rate that stays fixed for five to ten years, then converts to an adjustable rate.

Product Details Apply

Fixed/Adjustable Movable Mortgages

APRs are based on a loan amount of $550000.

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%	7%	6.818%	$6.65	^CC, ^DD, ^EE, ^FF, ^S
5/530 Years	1.000%	6.75%	6.815%	$6.49	^CC, ^DD, ^EE, ^FF, ^S
7/2330 Years	0.000%	7%	7.335%	$6.65	^CC, ^DD, ^EE, ^FF, ^S
7/2330 Years	1.000%	6.75%	7.303%	$6.49	^CC, ^DD, ^EE, ^FF, ^S
10/1030 Years	0.000%	7%	6.877%	$6.65	^CC, ^DD, ^EE, ^FF, ^S
10/1030 Years	1.000%	6.75%	6.807%	$6.49	^CC, ^DD, ^EE, ^FF, ^S
10/1040 Years	0.000%	7.125%	6.910%	$6.31	^CC, ^DD, ^EE, ^FF, ^FFF, ^S
10/1040 Years	1.000%	6.875%	6.844%	$6.12	^CC, ^DD, ^EE, ^FF, ^FFF, ^S

CC) Discount points are paid to buy down the interest rates and are calculated as a percentage of the loan amount.
DD) Interest rate based on the above assumptions, and may be different than the rates displayed here. The interest rates, Annual Percentage Rates (APRs), discount points, and rebates shown are subject to change without notice.
EE) Payment per $1,000 balance is based on the interest rate listed for the amortization term listed, and is rounded to the nearest cent. Example: for a 30 year, $726,200 conforming mortgage with zero-points and a fixed rate of 7.125%, multiply 726.2 x $6.74 for an approximate payment amount of $4,892.54 (loan amount ÷ $1,000 x payment example = payment amount). The monthly payment amount shown includes principal and interest, and does not include amounts for taxes and insurance premiums, if applicable. Your actual monthly payment will be higher if an escrow account is established or required. Private mortgage insurance (PMI) is required on mortgages that exceed 80% loan-to-value (LTV), and would also increase the payment amount..
FF) All mortgage loans through Provident Credit Union are for homes in California only. Adequate property insurance required for the life of the loan. Flood insurance may be required. All loans subject to credit approval. Other restrictions may apply. Provident Credit Union NMLS #412725
FFF) 40-year term must be owner occupied condo or single family purchase or rate and term refinance only (no cash out).
S) APR - Annual Percentage Rate. Your APR will vary based on your final loan amount and finance charges. Your actual payments are based on the interest rate, not the APR.

Introducing 40-Year Mortgage Loans