40 year mortgage

Yes there are such things as a 40 year mortgage through Fannie Mae! Oh wow this great I can buy more house and spread out the payments more. Hold back... now

You are adding a whole decade on for interest-that could add hundreds of thousands of interest on.

Let's take this example provided by Michele Singletary Washington's Post personal finance writer.

For example, let's say you have a $300,000 mortgage and the interest rate is 6 percent fixed for 30 years. Your monthly mortgage payment would be about $1,800, not including taxes and private mortgage insurance. Over the life of the 30-year loan you would pay about $348,000 in interest.

A $300,000 home loan for 40 years at a 6.25 percent interest rate would drop your monthly mortgage payment to about $1,700. However, your total interest payments would be more than $517,000.

There is only $100 difference the monthly payment but a world of difference in what you pay overall. Look at all of your expenses, your budget before you make such a costly mistake.

Be a smart financial consumer!

Enjoy your savings!