Bills.com Addresses Pros, Cons of 40-Year Mortgages

3. Buying too soon. Some buyers are lured by 40-year mortgages because they can buy a home sooner than with a 30-year mortgage. But those who believe they need the 40-year mortgage because they have too much debt to qualify for a shorter-term mortgage should think twice. Having that much debt may indicate that they should not be purchasing a home at all. Instead, prospective buyers would be wiser to work to pay off some debt first, and then look for a home to buy.

They will have lower risk of default, which could take away the home, credit rating, and chance to buy another home.