If you never pay extra (on the loan), you will still owe the same amount you originally borrowed after having owned the home for three to five years. |
The 40-year loan is advantageous, because it allows the borrower to qualify on a lower monthly payment, thereby increasing the loan amount they can qualify for. |
This can be a great loan for people who (anticipate) increasing incomes over the next few years, or other circumstances that would allow them to pay extra after they get into the house. |