40-Year Mortgage Mania: A Misunderstanding That Broke the Internet

Earlier this week, the internet went wild about a 40-year mortgage, and searches for it skyrocketed faster than a TikTok dance challenge. But it turns out that the excitement was all for nothing - there is no new 40-year mortgage product. Many mortgage lenders had to field calls and explain this was a simple misunderstanding due to misinformation spread on social media (shocking I know.)

So what's the deal with this "40-year mortgage" everyone's been talking about?

Turns out it's not a new loan option for buying or refinancing a house, but rather a modification available to homeowners who are in a bit of a financial pickle. If you've already defaulted on your Federal Housing Administration mortgage, a 40-year loan modification could help you avoid foreclosure by spreading out your payments over a longer period of time. It's not quite the same as a traditional mortgage, but it could be a lifeline for those in need. Which is wonderful for folks in a financial hardship position, but once again is definitely NOT a new option for homebuyers.

If you are in the market for a new mortgage, fear not! There are plenty of other options out there, from tried-and-true 30, 20, and 15-year fixed loans, to shorter-term adjustable-rate mortgages, and even "temporary rate buydown" products that can reduce your mortgage payments by hundreds of dollars per month in the first one to three years of a loan.

Just not a 40 year FHA loan. So, if you were hoping to hop on this new mortgage trend, you'll have to wait for it to actually exist.

DISCLAIMER: This informational is educational in nature only. Loan product availability and qualification requirements are constantly changing. If you'd like to learn more about a product, please contact on our our highly qualified loan officers.