In order to raise home values further, they'll start offering a 40 year product to everyone. This will lower the monthly cost further. It makes sense, as the ba

In order to raise home values further, they'll start offering a 40 year product to everyone. This will lower the monthly cost further. It makes sense, as the bank wants to keep the money train rolling. It's actually "good" for everyone; underwriters (lower payment = lower risk), salespeople (continue to close), C-level execs (keep that money train rolling), home-buyers (heck yeah I can afford that 4 quadrillion dollar home). I believe the way they're currently handling "lowering payments" in delinquent loans in the United States is by offering 40 year terms on loans as adjustments. Rather than foreclosing, they offer a more palatable monthly rate by extending the loan for 10 years.