Bank Of America 40 Year Mortgage: What You Should Know
Thinking of stretching your mortgage to lower monthly payments? The Bank Of America 40 Year Mortgage might just be the long-term option you’re looking for. In this guide, we’ll explore if Bank of America really offers 40-year terms, how it compares to traditional loans, and what alternatives exist. You’ll learn the ins, the outs, and who this strategy actually works for in today’s housing market.
Chase 40 Year Mortgage: What You Should Know
Table of Contents
Does Bank Of America Offer A 40 Year Mortgage?
Let’s address the burning question right away.
Is A 40-Year Mortgage Option Available Through Bank Of America?
As of today, Bank of America does not offer a 40-year fixed-rate mortgage to the general public. Instead, they focus on conventional 15- and 30-year loans, along with adjustable-rate mortgages (ARMs) and government-backed loans like FHA and VA. However, some loan modifications and hardship programs internally offered may extend terms up to 40 years in rare cases.
Why Borrowers Are Asking About 40-Year Mortgages
Homebuyers in 2025 are facing higher home prices and interest rates, creating a demand for more affordable monthly payments.
What’s Driving Interest In 40-Year Mortgages?
- Rising home prices in major U.S. cities
- Monthly payment affordability concerns
- Inflation and interest rate hikes
- Longer-term homeownership planning
- Desire to qualify for higher-priced homes
How 40-Year Mortgages Work
Even though Bank of America doesn’t offer standard 40-year loans, it’s helpful to understand how this type of mortgage functions.
Key Features Of A 40-Year Mortgage
- Lower monthly payments due to extended term
- Higher total interest paid over the life of the loan
- Often used in loan modifications, not first-time mortgages
- May include interest-only options in early years
Bank Of America Alternatives For Longer Loan Terms
If you’re determined to get a 40-year mortgage, there are lenders beyond Bank of America who offer these terms.
Lenders That Offer 40-Year Mortgage Options
- New American Funding: Offers non-QM 40-year options
- Carrington Mortgage Services: Caters to credit-challenged borrowers
- Angel Oak Home Loans: Specializes in non-traditional income verification
- Rocket Mortgage (through partners): Provides 40-year terms via modifications
- Caliber Home Loans: Offers 40-year fixed through specific programs
Bank Of America’s Loan Modification Program
In hardship cases, Bank of America may consider extending your mortgage to 40 years as part of a workout solution.
How Their Loan Modification Works
- Must demonstrate financial hardship
- Usually available after delinquency or forbearance
- Can reduce monthly payments by extending terms
- Typically applies to existing Bank of America customers only
Pros And Cons Of 40-Year Mortgages
Understanding both sides helps you decide whether to seek a lender that offers these terms.
Benefits Of A 40-Year Term
- More affordable monthly payments
- More borrowing power
- Ideal for buyers with long-term income security
Downsides Of A 40-Year Term
- Much more interest paid over time
- Builds equity more slowly
- Often not eligible for government-insured programs
- Limited lender availability
Who Should Consider A 40-Year Mortgage?
It’s not for everyone, but some people may benefit from the longer term.
Ideal Candidates For 40-Year Mortgages
- First-time buyers who want to ease into ownership
- Borrowers with irregular income
- Buyers in high-cost housing markets
- Homeowners needing loan modification relief
How To Qualify For A 40-Year Mortgage Alternative
Bank of America may not offer them upfront, but some non-traditional options are accessible.
What You’ll Typically Need
- Strong credit score (660+ for most non-QM lenders)
- Steady or documented alternative income
- Larger down payment for non-QM loans (often 10-20%)
- Flexibility on terms and fees
What You Can Do If You Want One Through Bank Of America
While you may not see a public 40-year mortgage product, there are strategic steps to take.
Steps To Take
- Talk to a Bank of America loan officer directly about hardship options
- Explore refinance programs through third-party lenders
- Use a mortgage broker to compare 40-year lenders
- Consider combining a 30-year loan with interest-only features for the first few years
40-Year Mortgage vs. 30-Year Mortgage At Bank Of America
Let’s compare what you’re trading off when considering a longer term.
Key Differences
| Feature | 30-Year | 40-Year |
|---|---|---|
| Availability | Yes | Rare (modification only) |
| Interest Paid | Less | More |
| Monthly Payment | Higher | Lower |
| Equity Building | Faster | Slower |
| Total Cost | Lower | Higher |
Final Thoughts Before You Apply
If you’re serious about a 40-year term, knowing where Bank of America stands helps you narrow your options.
Frequently Asked Questions About Bank Of America 40 Year Mortgage
Does Bank Of America Offer 40 Year Mortgage Loans?
No, Bank of America does not currently offer 40-year mortgage loans to the public. These terms may be available through internal loan modifications for existing customers in hardship situations.
Can I Refinance Into A 40 Year Mortgage With Bank Of America?
Bank of America does not offer 40-year refinance terms as a standard option. However, in loan modifications, a refinance-like structure might extend to 40 years based on financial need.
What Are My Options If I Want A 40 Year Mortgage?
You’ll need to look outside Bank of America. Lenders like New American Funding or Carrington Mortgage Services specialize in non-QM 40-year mortgages.
Are 40 Year Mortgages More Expensive Overall?
Yes, while monthly payments are lower, you’ll pay significantly more interest over the life of a 40-year loan compared to a 30-year loan.
Is A 40 Year Mortgage Good For First-Time Buyers?
It can be helpful for first-time buyers needing lower payments, but it may delay equity building. Consider your long-term financial goals.
Does A Longer Mortgage Help Me Qualify For More Home?
Yes, a 40-year mortgage can help you afford a more expensive home by lowering your monthly obligation, though it increases total loan cost.
Can I Switch To A 40 Year Mortgage Later?
You may be able to switch during a loan modification or refinance process, though it depends on lender policy. Bank of America does not offer this publicly.
How Do I Apply For A Loan Modification At Bank Of America?
Contact their mortgage servicing department, submit proof of hardship, and go through their evaluation process. Approval is not guaranteed.
What Credit Score Do I Need For A 40 Year Mortgage?
Typically, a score above 660 is ideal for non-QM 40-year mortgages. However, alternative documentation may be considered by some lenders.
Can I Use A 40 Year Mortgage For Investment Properties?
Some non-QM lenders allow 40-year terms for investment properties, but Bank of America does not support this structure.
Is There An Interest-Only 40 Year Mortgage?
Yes, some lenders combine interest-only features with a 40-year term. This may further lower payments in the early years.
How Much Do I Save Monthly With A 40 Year Term?
Monthly payments can be 5-15% lower than a 30-year loan, depending on interest rate and loan amount.
Does Fannie Mae Or Freddie Mac Allow 40 Year Mortgages?
No, government-sponsored enterprises do not buy or guarantee 40-year loans. These loans remain in the lender’s portfolio.
Are There FHA Or VA 40 Year Mortgages?
As of now, FHA and VA programs do not offer 40-year mortgage terms.
Can I Pay Off A 40 Year Mortgage Early?
Yes, most 40-year loans allow early payments without penalty, but always read the fine print.
Is Bank Of America A Good Lender For Long-Term Loans?
Yes, if you’re looking for 30-year fixed or ARM options. They’re reliable, but do not currently support 40-year terms as public loan products.
What Happens If I Miss A Payment?
Bank of America has delinquency support and hardship programs. Contact them immediately if you’re struggling to make payments.
Are 40 Year Mortgages Risky?
They come with risks like slower equity growth and higher interest over time. They’re best used by informed borrowers.
Can I Get A 40 Year Mortgage With Poor Credit?
Some non-QM lenders accept scores as low as 620, but you’ll pay a higher rate and need a larger down payment.
Does Bank Of America Offer Custom Mortgage Terms?
Mostly standard terms (15 or 30 years), though loan modifications may adjust this.
Can I Transfer My Bank Of America Mortgage To Another Lender?
Yes, you can refinance your mortgage through another lender offering a 40-year product.
Is It Harder To Sell A Home With A 40 Year Mortgage?
No. The mortgage doesn’t impact your ability to sell, but payoff calculations may be more complex.
How Common Are 40 Year Mortgages In The U.S.?
They are relatively rare and are typically found in non-QM or modification scenarios.
Can I Combine A 40 Year Mortgage With An ARM?
Yes, some lenders offer 40-year ARMs, but Bank of America currently does not.
What’s The APR On 40 Year Mortgages?
It varies by lender and borrower profile. Expect slightly higher rates than 30-year fixed options.
Are 40 Year Mortgages Available In All States?
Most are available nationwide through specific lenders, but not all lenders operate in every state.
What Income Do I Need To Qualify?
Depends on the loan size and lender, but you’ll need to meet debt-to-income ratio requirements.
Can I Lock In A Rate For A 40 Year Term?
Yes, some lenders offer fixed 40-year rates, though they are less common than adjustable options.
Do 40 Year Loans Include Mortgage Insurance?
Yes, if your down payment is under 20%, you’ll likely pay PMI—just like with 30-year loans.
Is A 40 Year Loan Better Than Renting?
If you plan to stay long-term and want ownership, it could be better than renting despite higher total interest.
Can I Use A 40 Year Mortgage To Buy A Second Home?
Yes, with non-QM lenders that offer investment and vacation home mortgages.
What’s The Minimum Down Payment?
Usually 10-20% for non-QM 40-year mortgages. Bank of America standard mortgages may allow lower down payments.
Are There Closing Costs?
Yes, expect 2–5% of the loan amount, similar to other mortgage types.
How Long Does Approval Take?
Typically 3–6 weeks, depending on the lender and required documentation.
Do I Need A Co-Signer?
Possibly, if your credit or income is insufficient on your own.
Can I Add An Escrow Account?
Yes, most lenders allow property taxes and insurance to be escrowed into payments.
What Are The Alternatives To A 40 Year Mortgage?
Consider 30-year loans with interest-only periods, adjustable-rate mortgages, or lower-cost homes.
Can I Get Prequalified For A 40 Year Mortgage?
Yes, through non-QM lenders. Bank of America prequalifies for 15- and 30-year loans.
Will A 40 Year Mortgage Hurt My Credit?
Not if managed well. Like any loan, late payments can affect your score.
How Do I Know If It’s The Right Choice?
Evaluate your long-term plans, income stability, and goals for homeownership.
Conclusion: Should You Wait For A Bank Of America 40 Year Mortgage?
If you’re hoping Bank of America will roll out a public 40-year mortgage soon, don’t hold your breath. For now, the better move is to explore alternative lenders or modification options if you’re already a customer. Stretching your loan term to 40 years can make ownership more affordable upfront—but it’s not a one-size-fits-all solution. Always weigh the long-term costs, and if you’re still unsure, a mortgage advisor can help walk you through it.