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  4. Understanding the 30-Year Fixed-Rate Mortgage
The 30-year fixed-rate mortgage has been America’s most popular home loan choice for several generations for many great reasons. 30-year fixed mortgages offer a low rate and payments that don’t change over the life of your loan. They allow for easy budget setting and increased cash flow, since you have a fixed low payment each month. You can always pay more toward your principal each month and pay off your loan sooner, but it’s your choice how much to pay. It’s that affordability and payment flexibility that has made the 30-year fixed the most popular loan, year after year.

Because the 30-year fixed is amortized over 30 years, you have 360 payments to pay back the loan, which allows for less principal required each month. Instead of being committed to a larger monthly payment (such as you would with a 15-year fixed), you can choose whether to pay the normal payment or pay extra each month. By paying a little extra each month, you can cut several years off the loan, but again, it’s your choice. No commitment to make the larger payment.

30-year fixed mortgages are great for people who plan on staying in their home for many years. If you don’t think you’ll move or refinance, this is a great choice to keep your payment low and predictable. The 30-year fixed mortgage is a conventional loan, meaning it’s backed by Fannie Mae or Freddie Mac. The FHA loan and the VA loan have 30-year fixed versions that might be a great choice also.

One last thing: You can borrow up to $3,000,000 with the 30-year fixed and buy a home with as little as 5% down. This can vary depending on the size of your loan, so make sure to check with a Home Loan Expert as to what your minimum down payment or equity requirement is. That’s it. Enjoy the video and let us know what you think.

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