A 30 year fixed rate mortgage loan is a loan in which the rate and the monthly payment stay the same over the 30 year life of the loan. Typically with these types of loans, your monthly minimum payments are much lower than a 15 year fixed rate mortgage loan. 30 year fixed rate mortgage loans are the most popular loans out in the market. You ae not required to keep the loan for all 30 years, in fact, a lot of people pay their homes off faster, refinance or sell their home before the 30 years.
Is a 30 Year Fixed Rate Mortgage Loan right for me?
So how do you know if this type of loan is right for you?
- You are looking to live in the home for a long time
- You want a low minimum payment but also want to option to pay more when you can
- Your debt to income ratio does not allow for a shorter repayment period
If all of these sound good to you, a 30 year fixed rate mortgage may be the right fit.
Is a 30 year or a 15 year loan better?
This is a common question that lenders get all the time but to determine what loan is best really depends on your unique situation. The best thing to do is to talk to a lender to determine the best loan and rate for you.