30 Year Fixed Rate Mortgage
30 year fixed mortgage rates start at 3.5% for refinancing or home buying.
Lenders offer several types of mortgages, but the most common are fixed-rate mortgages. These loans feature fixed rates and monthly payments, generally for 15-year and 30-year periods.
They're popular because:
Consumers balk at the thought of their house payment rising and falling with
Whenever rates are low, fixed-rate mortgages are very affordable.
Fixed-rate loan borrowers face one major choice: 15 year or 30? For some, a
loan makes more sense. For others, a 15-year mortgage does. Here are some pros
and cons of each.
|Thirty-Year Mortgage Rates
- Home Refinancing
- 100% Home Financing
- 30 Year Refinancing
- 80-20 Home Loans
- 2nd Mortgage Loans
|Refinance your 1st and 2nd mortgage loans together and reduce your monthly payments with low rate thirty-year mortgages!
Advantages of a 30-year
Offers borrowers the chance to borrow money on a long-term basis without having
to worry about the interest rates or payments changing.
Monthly payments are lower than those on 15-year loans because the interest
is amortized over a longer period. Qualify now for a no cost loan!
Lower monthly payments free up money that borrowers can pour into investments
that yield more than their homes.
Higher interest bill increases the amount consumers can deduct at tax time,
potentially reducing or eliminating their federal income tax liability.
Disadvantages of a 30-year
Borrowers build equity at a very slow pace because payments during the first
several years go largely toward interest rather than principal.
The overall interest bill is much higher because of the long amortization
The interest rates are higher than on 15-year loans.
Advantages of a 15-year
Borrowers build equity much more quickly due to shorter amortization schedules.
Overall interest bills are dramatically lower than those on longer-term
The interest rates are lower than 30-year
Disadvantages of a 15-year
Monthly payments can be significantly higher than those on 30-year
Restricts home buyers to smaller house than they might be able to afford with
Let's say you have a $150,000 mortgage. Let's compare how much money you would
pay out in interest over 30 years vs. 15 years. The following chart shows the numbers. The monthly loan
payments are principal and interest only. As you can see, with a 15-year loan,
you would save $117,001 in interest.
Loan term Rate Monthly payment Total interest
30 years 6.64% $961 $196,304
15 years 6.10% $1,274 $ 79,304
Interest savings: $ 117,001
Other factors to consider
Take the example above: With the 15-year loan, the monthly mortgage payment
is $313 more than the 30-year
mortgage. You may want to put that money toward another investment. For
instance, in a bull-market economy, you can make more money investing that $313
monthly in mutual funds or other investment securities.
Keep in mind that there are ways to prepay your mortgage and whittle away at
the principal each month, so that the loan is paid off sooner than 30 years.
Also, it depends on how long you plan to own the home you are purchasing. If
it's less than five years, you may be better off with an adjustable-rate mortgage,
Compare the rates
Check out the latest Bankrate.com survey of interest rates on 30-year
fixed mortgages and survey of interest rates on 15-year
To find out what the mortgage principal and interest would be on a particular
loan you may be considering, go to "Calculate your mortgage payment."