30 Year Fixed Rate Loans
Discover How 30 Year Fixed Rate Loans
Might Make Sense For You
30 year fixed rate mortgage loans are among the best liked in the world. You can depend on these loans to remain unchanged for the duration of the mortgage. Your interest rate can never increase and the length of the loan is unchanged for the life of the mortgage.
What exactly is a 30 year fixed rate loan?
A 30 year fixed rate loan is a mortgage in which the interest rate remains fixed for the life of the mortgage. The lender can never raise the rate on the borrower.
Who is a good candidate for a 30 year fixed rate loan?
This is an easy one. People who don’t like surprises should get a 30 year fixed rate loan. Also, people who want the same payment, month in and month out, for the duration of the loan. This kind of loan is also a solid bet for people who will to keep their home for longer than 8 years or so, and would like the monthly payment to be amortized over a lot of years so it’s smaller.
Benefits of 30 year fixed rate loans
• The monthly principal and interest never change, allowing you to easily budget
• You are protected against rising interest for the life of the loan, regardless of how high rates go.
• If you plan on staying in the home for a long time this type of loan is a good choice.
• The term of the loan never changes, making it easy to budget payments.
Down side of 30 year fixed rate loans
• The interest paid is higher on a long-term loan than on a short-term loan.
• The length of time you make payments is much longer, meaning the mortgage remains active for a longer period of time.
While 30 year fixed rate loans might not be right for everyone, they are a great way to beat inflation, as the rate is not locked into an index and never increases.