If you’re looking to buy a house but don’t have enough cash saved up for the down payment, you might be considering getting a 30-year mortgage. But what does that mean, exactly? And how much interest will you pay? Read on to learn about the top five things you should know about this type of loan.
30-Year Fixed-Rate Mortgage
What is a 30-year home mortgage?
The traditional 30-year fixed mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then stable-rate loans are usually cheaper.
Why Would I Choose a 30-Year Loan Instead of Another Term Length?
The 30-year mortgage has consistently been the favorite among homeowners for its low monthly payment. Though more of your money goes to interest, and you pay for twice the length of time compared to a 15-year term, the advantages of a lower monthly payment can't be ignored.
Are There Any Other Benefits to Choosing a 30-Year Loan?
A 30-year mortgage could allow you to afford more physical property than a 15-year mortgage. If you need a bigger mortgage to buy a larger home, taking 30 years to pay it off would give you the freedom to make this purchase. It might not be possible if you only had 15 years to pay off the loan.
How Does Interest Rate Affect My Decision on Which Loan Length To Choose?
How Do I Calculate My Payments & Interest Over Time?
New Dwelling mortgage has a free tool you can use to calculate your estimated monthly mortgage payment, including taxes and insurance. Enter the home price, your down payment, and details about the home loan to calculate your payment breakdown, schedule, and more!
Still have questions on the 30-Year Fixed-Rate Loan Process?
If you still have questions on the 30-Year Fixed-Rate Home Loan Process, please contact New Dwelling Mortgage at 1-844-317-3050, Monday through Friday from 9:00 am to 5:00 pm EST.