The 40 year home loan is the same as the 30 year home loan, but your payments are smaller and the payments last 10 years longer.  You should be aware that the lender will charge up to 1.5 percent of the loan amount for this opportunity or increase the interest rate by roughly 1 percent.  This is because you are holding the money longer.

While it has a lower monthly payment, in the end, the total amount you pay for the home loan is significantly more than the 30 year home loan.  The 40 year home loan is not recommended.

Here is an example of the difference in monthly payments between a 30 year home loan and a 40 year home loan:

30 Year Home Loan
Loan Amount: $100,000
Monthly Payment at 6%: $599
Total Interest: $115,838.45

40 Year Home Loan
Loan Amount: $100,000
Monthly Payment at 6%: $550
Total Interest: $164,107.57