40-year fixed rate mortgage

Increase Investment Property Cash Flow with a 40 Year Mortgage

Rising real estate values and increasing interest rates suggest that now could be the right time to secure a 40 year mortgage.

Call an Investment Property Loan Advisor at (800) 906-7155

**As of 12/3/2021, this product is based on a rate and term refinance loan with 70% loan to value ratio, a 740 credit score, paying 1.25% discount points, on an owner-occupied principal residence, an interest rate of 3.77% and APR of 3.87% for a 40-year loan with an interest only period for the first ten years and fully amortized payments for the remaining 30 years of the 40-year term. Your loan terms and interest rate may be different depending on your credit score, your loan to value ratio, how many discount points you pay, when you lock in your interest rate, the property’s occupancy type, and other factors.

Be sure to read important information about loan payments, below

Ask a Sprout Mortgage Loan Advisor about 40 year mortgage options on investment properties

No items found.

Improve Investment Property Cash Flow with a 40 Year Mortgage

Did you know 40-year mortgage solutions are standard issue at Sprout Mortgage? Created with real estate investors in mind, Sprout Mortgage’s 40-year mortgage options begin with 10 years of interest only financing, with the balance of the loan repaid over 30 years of amortizing payments at a fixed interest rate. 

Benefits include:

·        lower monthly interest-only payments in the first 10 years

·        A fixed interest rate for the life of the loan, 40 years to repay the loan This loan product allows investors cash flow advantages as they can purchase rental properties at today’s prices, secure a historically low fixed rate, and benefit from a low interest only mortgage payment in the first ten years of ownership. 

Ask a Sprout Mortgage Loan Advisor about 40-year mortgage options on investment properties

Rising real estate values and increasing interest rates suggest that now could be the right time to secure a 40-year mortgage. Starting with 10 years of interest only payment opens windows of opportunity for new and seasoned investors to purchase rentals, mixed use, vacation investment properties, multifamily properties, and condotels. 

As of 5/13/2022, for a $400,000 loan amount, with a loan to value ratio of 65%, a 740 credit score, paying 1.25% in discount points, on an owner occupied primary residence, this 40-year fixed rate loan, with an interest rate of 6.757% and an APR of 6.898%, will have a ten year interest only period with payments of $2,252.33, and the remaining 30 year period will have a fully amortized payment of $2,596.25. Your loan terms, interest rate and APR may be different depending on your credit score, your loan to value ratio, how many discount point you agree to pay when you lock in your interest rate, the property’s occupancy and other terms.

Get your questions answered by a Loan Advisor at (800) 906-7155

Let's Get Started

Call us (800) 462-6470

or fill out the form below

Sprout Mortgage is a nationwide direct lender and we’ve been helping homeowners reach their goals for nearly a decade.

*if you don’t know the property state select your current state
*if you don’t know the property state select your current state
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
test
test

Also Available

Whether you’re a small business owner, yoga instructor, seasonal employee, freelancer/contract employee, or investor, Sprout can help you get a mortgage!

Asset Depletion Loans

Investor Debt Service Coverage

Ideal for individuals with substantial liquid capital (more assets than income), the Asset Depletion program permits borrowers to qualify based on their assets up to 50% DTI.
Designed for those whose income is derived from property rentals. Use the cash flow from your rental property to qualify.

Here’s How We Can Assist You in Buying a Home

Other loan features include:

No items found.

Learn MoreLet's Get Started

This communication does not constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to credit, underwriting and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.