30 Year Fixed Mortgages
The 30-year fixed-rate mortgage is a popular home loan option for a reason. If you want lower monthly payments and the comfort of a fixed interest rate, check out the 30-year fixed.
What is a 30-Year Fixed Rate Mortgage Loan?
A 30-year fixed mortgage is a loan with an interest rate that does not change for the entire 30-year life of the loan.
For example, on a $300,000 loan with a fixed interest rate of 5.00%, on a 30-year mortgage, the monthly payments will be $1,610.46. So, as long as you have that loan, the interest rate of 5.00% and payment stays the same.
Which Type of Borrower Should Choose a Fixed Loan?
Borrowers who want a non-fluctuating set amount deducted from their monthly income are best prepared for 30-year fixed mortgages. These are borrowers who don’t like surprises when it comes to monthly bills. Typically, if you plan to stay in the home for over 5 to 7 years, it’s a great plan as you don’t have to worry about the ups and downs of the financial markets.
30 Year Fixed Requirements
Keep your payments low without worry over rising rates.
- Down Payment: At least 3% of the purchase price
- Credit Score: Satisfactory credit report with a minimum 620 credit score
- Employment Income: Verified through tax returns and/or paystubs
- Debt Ratios: Below 50. Although FHA may allow 54.9%
- Liquid Assets: Meet lender’s funds to close and reserve requirements
Not everyone qualifies for a 30-year fixed loan. 1st Nationwide Mortgage Corp. will do its best to help our clients qualify for loans with or without the traditional income qualification standards.
30 Year Fixed FAQs
What are the cons of a 30-year mortgage?
You pay more interest over the life of the loan than if you had a 15-year fixed or 20-25 year fixed.
What is a good reason to choose a 30-year fixed rate mortgage?
A 30-year fixed mortgage provides borrowers the lowest monthly payment compared to a 15-year fixed loan. The lower monthly payment permits a more manageable payment if you have a period of low income or being laid off or hospitalized.
Is a 30-year fixed mortgage better than a 10/1 ARM?
Currently, the mortgage interest rates for each are nearly identical. In this instance the borrower should select the 30-year fixed.
Ready to Get Started?
Talk to a licensed loan officer about your options — no obligation.