During the past few weeks several mortgage lenders have announced that they will now offer 40-year mortgages. This is a curious idea, but not as curious as it could be: At the height of the property boom in Japan some houses were financed with 100-year mortgages.

The 30-year mortgage that is now the gold standard of American house finance was once virtually unknown. In the early part of the 20th century most mortgages in the U.S. were "term" cash advances, mortgages that lasted just five years. Since most of the bills could not be repaid in five years, at the end of the term owners would go out and get replacement five-year mortgages.

This system worked fairly well until the 1930s. Then the Depression drove down employment levels and shredded property values. In the west, the Dust Bowl impacted many states.

But then a new idea arose. The just-formed Federal Housing Administration (FHA) said it would guarantee the repayment of 20-year cash advances if borrowers would pay insurance fees. Private lenders followed with their own longer-term mortgages and the result was that term cash advances largely disappeared from the U.S. marketplace.

Over time the accepted definition of "long-term" financing changed from 20 years to 25 years and then to 30 years. Forty-year mortgages have been available since at least the 1980s.

What's the attraction of long-term cash advances?

Constant-rate, long-term financing represents stability. If times are tough you don't have to worry about qualifying for a new cash advance. And if rates are constant, then rising interest levels are not a concern. Individuals that have shown interest in Could A 40-Year Mortgage Be For You have also shown interest in non status loans. A new approach to non status loans is beneficial.

But longer-term cash advances also have another value: They may allow borrowers to qualify for more financing.

Suppose we want to borrow $300,000 at 6.5 percent interest. With constant-rate financing, the monthly costs for principal and interest would be as follows:

Monthly Mortgage Payments: Principal & Interest

15-years: $2,613.32

20-years: $2,236.72

25-years: $2,025.62

30-years: $1,896.20

40-years: $1,756.37

40-years: $1,691.15
The list above plainly shows that the longer the term, the lower the monthly cost for principal and interest. The practical advantage of longer monthly payments is that borrowers can obtain larger cash advances. Compared with 15-year financing, using a 40-year cash advance would reduce cash costs by more than $900 a month in our example.

Monthly payments are not the only think aboutation, however. Borrowers should also look at potential cash advance costs. Because longer-term cash advances are, well, longer, cash is outstanding for a greater period of time than with 30-year financing. The result is that potential interest costs increase substantially with time.

Total Potential Interest:

15-years: $170,397.98

20-years: $236,812.66

25-years: $307,686.45

30-years: $382,633.47

40-years: $543,057.81

40-years: $714,690.40
The huge interest-costs over 40 years surely seem formidable, but is that really the case?

There are several issues to think about.

If you can buy an appreciating property then a long-term cash advance may be advantageous when compared to the alternative: No financing. If you cannot qualify for other cash advance products because the monthly cost is too high or for other reasons, then 40- and 40-year financing may be attractive.

If you get a constant-rate mortgage you have protection against rising interest costs. In effect, a hedge.

If you expect your income to rise in the future, a longer-term cash advance may allow you to buy now instead of waiting until you have a larger paycheck -- or waiting until prices are higher.

If you have a constant-rate mortgage and have the right to prepay, in whole or in part, at any time and without penalty, then you have two attractive options: First, as your income grows you can make monthly prepayments that reduce the cash advance term and cut potential interest costs. Second, if rates decline you can refinance -- an attractive choice given that cash advances today can often be refinanced without the need for much (or sometimes any) cash at closing. (That's not to say there is no cost to close, but that you can finance closing costs and thus avoid the need to come up with cash.) Problems around credit card with no credit check can sometimes be sorted out with a little homework. Once you have a better grasp of credit card with no credit check you can make more money.

This is the biggie: The potential cost over 40 years is not a worry if you only have the cash advance for five years, 10 years or whatever.
Would I get a longer-term mortgage? Actually, I have.

Long ago I bought an investment property with a 40-year cash advance. Since then rental rates have increased and the property has long thrown off a positive cashflow each month. No less important, the value of the property has increased some 400 percent -- value I would not have if the property could not have been buyd.

So the next time someone mentions a longer-term cash advance, don't laugh. Check rates, terms and conditions; it may well be that a long-term cash advance is what you need to get the property you want with the income you have now. Good use of loans with no credit check can be great for some people. The key is to comprehend loans with no credit check .