Check out housingbubblecasualty.com. SoCalMtgGuy, who runs this site, wrote an article a few weeks ago, showing that the payment on a 40 year is only slightly lower than it would be for a 30 year. I think those loan products are too much hype, and they won’t raise your affordability as much as the ARMs, I/Os and neg-ams did. Maybe SoCalMtgGuy can write an article about this – ask him. He knows a lot about loans.