A young woman in Minnesota was looking for the lowest possible monthly payment she could get with a fixed-rate mortgage. Instead of opting for the standard 30-year fixed-rate mortgage, she chose to stretch the loan an additional 10 years. Now thanks to a 40-year fixed-rate mortgage, the woman can afford slightly more house than the first-time home buyer would've been able to purchase without it, said Brad Crandall, president of CU Mortgage Services. Owned by 54 Minnesota credit union organizations, CU Mortgage Services is one of about a dozen credit unions across the country to begin offering 40-year fixed-rate mortgages as part of a pilot program through Fannie Mae. Interest in the loan has been slow so far, Crandall and others have said, but they expect it to pick up as interest rate...
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