How a 30 Year Fixed Rate Mortgage Works
30 Year Fixed Rate mortgages are among the most popular home loans available for buying a home or refinancing an existing mortgage. They offer borrowers the security of stable, affordable monthly payments and protection from market changes.
30 Year Fixed Rate Overview
A Fixed 30 Year mortgage is a loan featuring an interest rate that stays the same over the life of the loan, as opposed to an ARM mortgage, which has an interest rate that can adjust periodically. A 30 Year Fixed loan allows a borrower to make payments over a 30 year term, and they offer the stability of an unchanged monthly payment, regardless of market fluctuations.
With a 30 Year Fixed Rate mortgage, your payment will be the same every month, so you can plan your finances accordingly and you won’t need to worry about your payment going up if the market changes.
You can use our Fixed Rate mortgage calculator to get an idea of what your mortgage payment might be.
30 Year Fixed Rate Benefits and Advantages:
Affordable Payments: With terms from 10 to 30 years, you can choose how quickly you pay off your mortgage.
The security of a fixed rate loan is attractive to many borrowers. Even if current rates go up, your rate won’t. You’ll have consistent monthly payments with no surprises, so you can plan your finances accordingly.
Loan terms are straightforward and easy to understand.