Traditionally, when purchasing a home, most people take out a 30-year mortgage. But recently, the federal government has introduced new loan options that make it possible to extend the loan over an additional 10 years, making the total pay off period 40 years.

If that sounds like a huge amount of time, take a few moments to consider the following facts:

A 40-year loan lets you get into a house now, not wait until your earning potential increases.

Just because you take out a 40-year loan does not mean you have to stay with a 40-year loan. You can easily refinance in a few years.

You may opt to sell the home in a few years. Getting into a home now allows you to begin building wealth in home equity. When you sell your home, you can take the profits and invest in your next home, with a standard mortgage term loan.

What does a 40-year loan offer? Simply put, with a 40-year loan you can afford to buy more home with less income. Using an average home price of $200,000 and interest rates today, a 40-year mortgage means have almost 5% more home buying power with the standard income/debt ratio than they would with a 30-year loan.

This mortgage option also gives buyers a little more flexibility. Many buyers would have had to consider interest only loans or adjustable rate mortgages. As the national interest rates increase, adjustable loans and interest only loans can quickly catch unsuspecting buyers in a position of being forced out of the home. Their monthly payment increases as interest rates increase, increasing over their allotted budget.

If you are confident in your wage earning potential and the possibility that it will increase over time, you may want to consider some of the programs that are combined with the 40-year mortgage. This mortgage option is available as a hybrid loan. Meaning you can combine the 40-year loan with another loan program, like interest-only or adjustable-rate loan.

Owning a home is a dream of many people. It not only makes sense because it gives you an opportunity to stop paying rent to a landlord, but it starts you on the path to investing your money in your home. Owning real estate is the number one way that people save money and it is now possible to save money even if your income is slightly lower than traditional home buying rates.

Talk with a mortgage consultant to day and discuss your options. You may be surprised at just how affordable it is to buy a home.