Close spiff

Ready to see how much money you can save on your monthly mortgage payment?

30 Year Fixed Rate

What is a 30-year fixed rate mortgage?

A 30-year fixed rate mortgage has a fixed interest rate for the life of the loan, which in this case is 30 years. This means that you will have the same monthly principal and interest payment because your payments do not change throughout the span of your mortgage.

One reason to consider a 30-year fixed rate mortgage is the possibility of a lower payment, which may help you afford more house. If you’re on a tight budget and need the predictability of knowing exactly what your monthly principal and interest payment will be each month, or you intend to stay in the home for longer than 5 years, the 30-year fixed rate mortgage may be a good fit.

While a 30-year fixed rate mortgage is desirable for many reasons, you will want to consider if it is right for you. For an example a drawback may be the amount of interest you’ll pay over the course of 30 years as mortgage interest rates tend to be higher for 30-year loans than 15-year loans. So, although your monthly payments will be less than someone with a shorter-term loan, you’ll pay more in interest in the long run.

As always before obtaining financing, we strongly encourage you to work with an experienced mortgage banker to fully understand your options if considering a 30-year fixed rate mortgage.

Key Things to Remember

  • With a 30-year fixed rate mortgage, we suggest that you plan to remain in your home for at least 5 years.
  • The mortgage interest rate is fixed, giving you a predictable monthly principal and interest payment.
  • Interest rate may be a bit higher.
  • The lifetime of the loan is 30 years.
  • Because your mortgage essentially is on a 30-year payment plan, your monthly mortgage payments are more affordable than a shorter fixed-rate mortgage.

To learn more about which loan option is best for you, call to speak with one of our expert mortgage bankers or if you're ready, get started today.

Apply Now

 

The above information is for educational purposes only.