Some people consider a 40 year mortgage a risky loan. The benefit of a 40 year mortgage that is fixed is lower monthly payments and possibly lower down payments. The additional interest over the life of the loan is significantly more than a 30 year mortgage though payments are usually only about 10% less. If the 40 year mortgage interest rate is more the monthly payment reduction can be negligible. In addition, equity due to paying down the mortgage is very slow to accumulate in the first ten years. If there is any depreciation due to the market, the location, or otherwise, the homeowner runs the risk of becoming financially upside down in the property. So as long as there is no prepayment penalty a 40 year mortgage can help a buyer afford to get in to a property and then pay the mortgage off early later.