30-Year Fixed Rate Mortgage

Lock in your interest rate to ensure a predictable monthly payment.

A family in front of their new home

What To Know About 30-Year Fixed-Rate Mortgages

Who Are 30-Year Fixed-Rate Loans Best For?

  • A 30-year fixed-rate mortgage might be the right option for you if you want:
  • Lower monthly payments
  • Predictable payment amounts
  • To stay in your home for a long time

How Do 30-Year Fixed-Rate Loans Work?

  • You pay off your loan over 30 years.
  • Your interest rate remains the same.
  • If you want to pay off your mortgage sooner, you can make extra payments or refinance.

How Do I Qualify For A 30-Year Fixed-Rate Loan?

  • Minimum 3% down payment
  • Minimum credit score of 580 to 620, depending on the loan type
  • Debt-to-income ratio no higher than 50%
  • Pay closing costs, which typically total 2% to 5% of the purchase price

30-Year Fixed-Rate Loan Benefits

  • Monthly payments are lower compared to a 15-year fixed-rate mortgage.
  • You have more time to pay off your loan.
  • Your interest rate doesn’t change.
  • You could buy a home with as little as 3% down.
  • You don’t have to pay for PMI with a down payment of at least 20%.

Mortgage Insurance Requirements

There are some cases where you’ll have to purchase mortgage insurance, which protects the lender if you can’t repay your loan:
  • You take out a conventional loan with a down payment of less than 20%.
  • You take out an FHA loan.
  • You take out a USDA loan.

Frequently Asked Questions

Here are answers to common questions about 30-year fixed-rate mortgages.

Your interest rate won’t change, but the amount you pay for homeowners insurance and property taxes can increase and affect your monthly payment.

A longer loan term gives you more time to repay your mortgage and requires a lower monthly payment than a loan with a shorter term.

You may pay more interest overall than you would with a shorter loan term, but the monthly payment will be more affordable.

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