The 30-year fixed rate mortgage, explained.
The 30 year fixed rate mortgage is a traditional mortgage loan allowing you to pay for your home over a 30-year period. Fixed rate means the interest rate you pay on the loan is set at the time of the loan and does not change over the life the loan. Because the interest rate stays the same, your monthly mortgage payment stays the same over the life of the loan.
Characteristics of the 30-year fixed rate mortgage.
- Most popular mortgage loan option
- A long-term, fixed-rate loan, spreading the cost of your home over 30 years
- A set, monthly mortgage payment that won’t change even if interest rates fluctuate
- Allows you to build equity in your home over time
- Possibly pay more in interest over the life of the loan in exchange for payment stability