Chase 40 Year Mortgage: What You Should Know

Curious if the Chase 40 Year Mortgage could be your ticket to lower monthly payments? In this guide, we break down whether Chase Bank offers 40 year loans, how it stacks up against other options, and what borrowers should know in today’s mortgage market. We’ll also explore alternatives, qualifications, risks, and everything else U.S. buyers are asking right now.

Bank Of America 40 Year Mortgage: What You Should Know

Does Chase Offer A 40 Year Mortgage?

Let’s kick things off by answering what most people really want to know.

Is A 40-Year Term Available Through Chase Bank?

As of today, Chase Bank does not offer a traditional 40-year fixed-rate mortgage to new borrowers. Instead, it focuses on 15-, 20-, and 30-year fixed mortgages, along with adjustable-rate mortgages (ARMs) and government-backed options like FHA and VA. A 40-year term may only be used during special loan modifications for existing customers.

Why Some Borrowers Are Asking For 40-Year Mortgages

Mortgage costs have soared in recent years, and longer loan terms are becoming more appealing to budget-conscious buyers.

Reasons Behind The Rising Interest

• Home prices have reached record highs in many U.S. markets
• Buyers are struggling to qualify with 30-year monthly payments
• Some are looking to stretch debt-to-income ratios
• First-time buyers want more affordable entry points
• Investors seek cash flow optimization

Understanding How A 40-Year Mortgage Works

Even though Chase doesn’t directly offer it, let’s look at how a 40-year mortgage is structured and who it might benefit.

Key Characteristics Of A 40-Year Mortgage

• Extended term = smaller monthly payments
• Higher total interest paid over time
• Often used in loan modifications or non-qualified mortgages
• Less equity buildup in early years
• May include interest-only periods in first 5–10 years

Who Might Qualify For A 40-Year Mortgage From Chase?

This type of loan is typically not advertised but may be available in hardship-related situations.

When Chase Might Offer A 40-Year Option

• During mortgage modification due to financial hardship
• After missed payments or forbearance during economic downturns
• Through government-sponsored relief programs
• On a case-by-case basis depending on borrower history

Lenders That Do Offer 40-Year Mortgages

While Chase sticks to traditional loans, some U.S. lenders openly offer 40-year options.

Possible Alternatives To Chase For A 40-Year Term

• Newrez: Known for non-QM mortgage products
• Carrington Mortgage Services: Focused on flexible terms
• Angel Oak: Works with self-employed or credit-challenged borrowers
• Caliber Home Loans: Offers custom term lengths
• LoanDepot: Sometimes offers 40-year options on refis or non-QM loans

Pros And Cons Of A 40-Year Mortgage

Understanding the trade-offs is crucial before opting for a longer repayment plan.

Advantages Of A 40-Year Loan

• Lower monthly mortgage payments
• Can help buyers qualify for more house
• Better short-term cash flow
• Useful in high-interest rate environments

Drawbacks Of A 40-Year Loan

• Higher overall interest paid
• Slower equity accumulation
• Usually not eligible for government-backed mortgage programs
• Limited lender availability

How Chase’s Loan Products Compare

Chase has a wide range of loan options—but none that last 40 years, unless through internal modification.

Chase Mortgage Products Overview

• 15-Year Fixed Mortgage
• 20-Year Fixed Mortgage
• 30-Year Fixed Mortgage
• 5/6, 7/6, and 10/6 Adjustable-Rate Mortgages (ARMs)
• FHA and VA-backed loans
• Jumbo mortgage options for high-value homes

Loan Modification Options Through Chase

For existing Chase mortgage holders, there may be room for flexibility.

Loan Modification Details

• Chase may restructure your existing loan term in times of hardship
• The new term could be extended up to 40 years
• Your interest rate may be adjusted
• Borrowers must demonstrate financial need and provide documentation
• The goal is to lower your monthly payment and avoid foreclosure

Should You Hold Out For Chase To Offer 40-Year Mortgages?

Let’s talk strategy for those loyal to Chase or considering future availability.

Possible Scenarios Ahead

• Chase could roll out 40-year products if housing costs continue rising
• Expect slow adoption due to risk and secondary market limitations
• In the meantime, consider trusted non-bank lenders for this option

Frequently Asked Questions About Chase 40 Year Mortgage

Does Chase Offer 40 Year Mortgage Loans?

Chase does not currently offer a 40-year mortgage loan as a standard product. The only instance where you might get a 40-year term is through a loan modification designed to help existing customers experiencing financial hardship.

Can You Get A 40 Year Mortgage With Chase Through Refinancing?

Chase doesn’t allow refinancing into a 40-year term. If you want that structure, you’ll need to look into non-QM lenders or specialized refinance products outside of traditional banks.

What Is The Longest Mortgage Term Chase Offers?

As of today, the longest publicly available term through Chase is a 30-year fixed-rate mortgage. This includes FHA, VA, and conventional loan programs. Anything beyond 30 years is only used in special servicing cases.

Why Doesn’t Chase Offer 40 Year Mortgages?

Most 40-year loans are non-conforming and aren’t purchased by Fannie Mae or Freddie Mac. Chase sticks with conventional mortgages that fit standardized lending criteria. Risk and limited demand also play a role.

Can You Modify Your Loan To A 40 Year Term With Chase?

Yes, under hardship circumstances, Chase may offer a loan modification that extends your mortgage to 40 years. This is designed to reduce monthly payments and avoid foreclosure for borrowers in financial distress.

Are 40 Year Mortgages Legal In The U.S.?

Yes, 40-year mortgages are legal in the U.S., but they’re not widely offered by major banks. Most are provided by private lenders through non-QM or portfolio loan products.

What’s The Catch With A 40 Year Mortgage?

The trade-off is in the total interest. While monthly payments go down, you’ll pay significantly more in interest over time compared to a 30-year loan. Also, equity builds more slowly.

Is A 40 Year Mortgage A Good Idea?

It can be, depending on your goals. If you’re focused on short-term affordability and staying in your home long-term, it may be worth exploring. Just be cautious of long-term costs.

What Credit Score Do I Need For A 40 Year Mortgage?

Most lenders that offer 40-year mortgages prefer credit scores of 660 or higher. However, some non-QM lenders may approve lower scores with higher down payments or alternative documentation.

Will Chase Ever Offer 40 Year Mortgages Publicly?

There’s no official announcement, but it’s possible if demand continues growing and secondary market options expand. For now, expect them to stick with traditional terms.

Can I Get A 40 Year Mortgage For A Second Home?

Yes, some non-QM lenders allow 40-year terms for second homes or investment properties. Chase does not offer this structure for second homes as of now.

Is PMI Required On A 40 Year Mortgage?

Yes, if you put less than 20% down, you’ll likely have to pay private mortgage insurance (PMI), just like with traditional mortgage terms.

How Much Lower Are Payments With A 40 Year Mortgage?

Monthly payments could be 10% to 20% lower compared to a 30-year loan, depending on the interest rate and total loan amount.

Can You Pay Off A 40 Year Mortgage Early?

Yes, most 40-year mortgages allow early payments and have no prepayment penalties. Just be sure to check the loan agreement for specifics before committing.

Are 40 Year Mortgages Available With Fixed Rates?

Some lenders offer fixed 40-year mortgages, while others structure them as adjustable-rate loans with interest-only periods in the first few years.

Do 40 Year Mortgages Have Higher Interest Rates?

Generally, yes. Because the loan is stretched out longer, lenders charge slightly higher interest to offset the increased risk and slower payoff.

Can First-Time Homebuyers Use 40 Year Mortgages?

They can, but it’s not common. Most first-time buyer programs focus on 30-year terms. Still, some non-QM lenders accept new buyers if they meet other criteria.

Are 40 Year Mortgages Available In Every State?

Yes, but availability varies by lender. Some institutions operate nationwide, while others offer these programs only in select states.

Does A 40 Year Mortgage Affect My Ability To Sell?

Not directly. You can sell your home at any time, regardless of the term. However, you’ll need to pay off the remaining loan balance at closing.

Is It Easier To Qualify For A 40 Year Mortgage?

It can be, since the payments are lower. But lenders often have stricter requirements to offset the longer repayment term. Expect tighter scrutiny on income and assets.

What’s The Best Way To Find A 40 Year Mortgage?

Work with a mortgage broker or search for lenders specializing in non-QM or custom loan solutions. These lenders are more likely to offer flexible term options.

Can I Refinance Out Of A 40 Year Mortgage?

Yes, if rates drop or your situation improves, you can refinance into a shorter term or lower interest rate—just like any other mortgage.

Are Jumbo Loans Eligible For 40 Year Terms?

Some private lenders offer 40-year jumbo loans, but they’re not standard products. Chase jumbo loans currently cap at 30 years.

What Down Payment Is Required For A 40 Year Mortgage?

Typically, a 10% to 20% down payment is expected. Non-QM lenders may be more flexible, but this depends on the strength of your overall application.

Do 40 Year Mortgages Help With Debt-To-Income Ratios?

Yes, extending the loan term reduces monthly payment obligations, which improves your debt-to-income ratio and could help you qualify for a larger loan.

How Long Does It Take To Close A 40 Year Mortgage?

Closing timelines are usually similar to other loans—around 30 to 45 days—depending on documentation, appraisal, and underwriting speed.

Can I Use A 40 Year Mortgage To Build A New Home?

Some construction-to-permanent loans may allow 40-year terms from select lenders. Chase does not currently offer this option.

Is There A Government Program For 40 Year Mortgages?

There’s no public loan program with 40-year terms. However, some modification programs, such as FHA-HAMP, allow term extensions up to 40 years.

Can I Combine A 40 Year Loan With An ARM?

Yes, some lenders combine adjustable-rate structures with 40-year amortization to reduce early payments. These are often non-QM loans with custom features.

What Is The Typical Interest Rate On A 40 Year Mortgage?

Rates vary, but expect to pay around 0.25% to 0.75% more than a comparable 30-year fixed mortgage.

Does Chase Offer Interest-Only 40 Year Mortgages?

No, Chase does not offer interest-only 40-year mortgages to the public. Some other lenders do, often paired with higher-risk investment loans.

How Can I Increase My Chances Of Getting Approved?

Improve your credit, reduce existing debts, increase your down payment, and provide consistent proof of income. A mortgage broker can help guide you through.

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Can I Get Prequalified For A 40 Year Mortgage?

Yes, many non-QM lenders offer prequalification tools online. While Chase does not provide 40-year mortgages for new applicants, third-party lenders will often let you check your eligibility without a hard credit pull. Be prepared to provide income, assets, and credit score details for an accurate assessment.

What Are The Risks Of A 40 Year Mortgage?

The biggest risks include paying more interest over the life of the loan and building equity more slowly. If you sell early or refinance, you might not gain much value from the extended term. It’s also harder to find government support or programs for 40-year loans.

Are 40 Year Mortgages Better For High-Income Or Low-Income Borrowers?

Both can benefit, depending on financial goals. Low-income borrowers get lower monthly payments, while high-income borrowers can use the freed-up cash flow for investing. However, those who can afford higher monthly payments may want to avoid the extra interest costs over time.

Can A 40 Year Mortgage Be Transferred?

Mortgages aren’t usually transferable between buyers. If you sell your home, the buyer will need their own financing. However, some lenders allow assumption under specific conditions, but this is rare and not typically allowed for 40-year non-QM loans.

Will A 40 Year Mortgage Show Up On My Credit Report?

Yes, just like any other mortgage, a 40-year mortgage appears on your credit report and affects your credit score. Timely payments can help build credit, while missed payments will negatively impact your score. The length of the term does not change how it’s reported.

Can A 40 Year Loan Be FHA Or VA Approved?

No, FHA and VA guidelines currently do not allow 40-year terms for new loans. However, in rare hardship-related modifications, terms may be extended under government relief programs. Chase follows these rules and does not originate new FHA or VA loans with 40-year terms.

Do You Need Mortgage Insurance On A 40 Year Mortgage?

Yes, if your down payment is under 20%, mortgage insurance will likely be required. This adds to your monthly cost and can last for several years unless you refinance or pay down your loan balance to the required equity threshold.

Is A 40 Year Mortgage Considered Predatory?

Not inherently, but it depends on how it’s structured. If it includes excessive fees, balloon payments, or unrealistic loan terms, it could be considered predatory. That’s why it’s crucial to read the fine print and work with reputable lenders only.

How Does A 40 Year Loan Affect My Net Worth?

Slower equity growth means your net worth increases at a slower pace compared to shorter mortgage terms. However, the lower monthly payments may allow you to save or invest elsewhere, which could offset the impact—if you manage your money wisely.

Will I Pay Off My Home By Retirement With A 40 Year Loan?

If you buy a home in your 30s, probably not. Many borrowers with 40-year mortgages either plan to refinance, sell, or make extra payments to shorten the payoff timeline. If retirement payoff is a goal, consider other loan options or early repayment strategies.

Can A 40 Year Mortgage Be Used For A Duplex?

Yes, some lenders offer 40-year terms for multi-family properties like duplexes, particularly for investment use. Chase, however, does not currently support this term for duplex financing. You’ll need to find a flexible lender in the non-QM space.

How Often Can You Refinance A 40 Year Mortgage?

There’s no legal limit to how often you can refinance, but most lenders require 6–12 months between refinances. The decision should make financial sense—whether to lower your rate, change the term, or remove mortgage insurance.

Does A 40 Year Loan Affect My Ability To Get Other Credit?

Potentially. Lenders look at your debt-to-income ratio. While a 40-year mortgage gives you lower monthly obligations, the overall debt amount is high, which may concern lenders for other large loans like auto or business financing.

What Kind Of Documentation Do I Need?

You’ll need proof of income (W-2s, pay stubs, or bank statements), credit reports, tax returns, and asset verification. Some non-QM lenders may accept alternative documents, like profit and loss statements for self-employed borrowers.

Are There Balloon Payments On 40 Year Mortgages?

Some lenders add balloon payments at the end of the 40-year term, especially in interest-only or adjustable-rate structures. These large lump sums must be paid in full or refinanced. Always review your loan terms to avoid surprises.

Can You Use A 40 Year Mortgage With A Co-Borrower?

Yes, most lenders allow co-borrowers, which can help increase the total loan amount you qualify for. The co-borrower’s income, credit, and debt will be factored into the application just like your own.

Is There A Prepayment Penalty?

Most lenders do not charge prepayment penalties, but it’s important to check the terms. Some non-QM or private lenders may include early repayment fees in the first few years. Ask upfront before signing your agreement.

Can I Rent Out A Home With A 40 Year Mortgage?

Yes, many investors use 40-year loans to improve cash flow on rental properties. Chase does not offer this option, but non-QM lenders do. Make sure your loan allows non-owner occupancy use.

Are These Loans Available For Manufactured Homes?

Some lenders offer 40-year terms on manufactured or modular homes, but it depends on the property type and foundation. Chase does not offer this for manufactured housing.

What Happens If I Miss A 40 Year Mortgage Payment?

Missing payments will result in late fees and may negatively impact your credit. After a certain point, your loan could go into default or foreclosure. Contact your lender immediately to explore forbearance or loan modification options.

Conclusion: Is The Chase 40 Year Mortgage Right For You?

While the Chase 40 Year Mortgage isn’t currently available as a standard loan product, understanding how it works and what your alternatives are is crucial. If lower monthly payments and greater flexibility are your goals, you might find better options through non-QM lenders. But if long-term equity and stability matter more, Chase’s 30-year products could still be your safest bet. The choice is all about your financial vision.