The 30-year fixed rate mortgage is considered one of the most commonly used loans, with approximately 80% of homeowners choosing it. However, the idea of paying twice the loan in interest over the span of 30 years has driven people away from it. So, it’s time to set the record straight before more homeowners miss out on its benefits.

The Benefits of a 30-Year Fixed Mortgage

There are two valid reasons why online mortgage lenders recommend 30-year fixed mortgages:

1. Payment Stability – With this loan, you won’t have to worry about changing mortgage rates. Your monthly payments will remain the same for a very long time. This stability and predictability are welcomed, especially if you expect financial changes in the future. On the other hand, buying a home loan with an adjustable interest rate may result in unpleasant surprises when your loan becomes more expensive.

2. Low Monthly Payments – Opting for a 30-year fixed first time home owners loan allows you to enjoy smaller monthly payments. This is why you may end up paying more interest over the years. However, you can always sell the property or refinance to get better rates before the term expires.

Should I Apply for this Mortgage?

Buying a home loan with a 30 year fixed interest is a major commitment. However, it’s a valid option if the following applies to you:

• You Seek Affordable Monthly Payments – This deal is perfect if you want affordable monthly payments for the next 30 years.

• You Think You Can Make Additional Payments – You can try paying off the loan faster by making additional payments or increasing your monthly payments. You can always fall back on smaller payments whenever needed.

• You’re Aiming for an Expensive Home – By opting for lower payments on your first time home owners loan, you can qualify for a more expensive property.

• You Like Tax Deductions – Current tax laws allow you to deduct mortgage interest from your taxes. As most payments go towards paying off interest in the initial years of the loan, expect a hefty tax deduction.
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Need more help? Discuss your eligibility for 30-year fixed mortgages with California’s top online mortgage lenders. Trust them to get you the best value while educating you on the options available for you.