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GeoPulse : Learn how to take control of your money with smart personal finance strategies, simple investing tips, and daily money hacks. In this video, we break down today’s financial news and give you practical steps to grow wealth, save smarter, and invest wisely.

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News
Transcript
00:00Effective next month, on the 8th of May, the Federal Housing Association will start rolling out 40-year mortgages to make monthly payments slightly more affordable.
00:07And here's exactly how much that would save you.
00:09If you bought the average house today for $363,000 at the current interest rate of 6.4%, you'd pay roughly $2,200 a month for a 30-year mortgage loan.
00:17With a 40-year loan, you'd pay only $2,060, so you'd be saving $140 in monthly payments.
00:23Now, that sounds like a better option, but the total interest you'd pay over the lifetime of the loan is over half a million dollars, which is $152,000 more than the 30-year option.
00:31And this move has the internet split into two camps.
00:33You'll loan nothing and be happy, while some people are excited.
00:36However, what the internet is not telling you is that this loan only applies to loan modifications for those who are behind on mortgage payments.
00:43So no, you will not be able to shop for a brand new home and expect lower monthly payments from a 40-year FHA loan just yet.
00:49And that's because...
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