What Is a 30 Year Fixed Mortgage?
We know that getting a mortgage can get frustrating, especially if you’re buying your first home. There are many options and terms associated with a mortgage: fixed vs. ARM, FHA, Jumbo and so much more. At Guaranteed Rate, we never like to leave anyone in the dark and want to educate our clients about all mortgage terms so they can choose the best loan for their lifestyle.
Today we’re going to explain one the most popular loan options: the 30-year fixed mortgage.
A 30-year fixed mortgage is a loan whose interest rate stays the same throughout the entire duration of the loan. Whatever interest rate you lock at the beginning of your mortgage will remain your interest rate for the entire life of the loan.
If you plan on staying in your house for more than 5-7 years and desire to have a mortgage payment that spreads out over many years for affordability, this may be the loan for you. This loan option is also great if you desire predictability when it comes to your mortgage and monthly payments. The 30-year fixed isn’t tied to the index, so it doesn’t fluctuate and is relatively simple and maintenance-free.
Want to figure out exactly which loan is for you? Click here.