The 30 year fixed rate mortgage is the most popular among long term fixed rate mortgages. Some go so far as to call it the best fixed rate mortgage. I've heard it referred to as boring but I crown it King of Mortgages! After all, homeowners have enough excitement in their lives without piling on mortgage payment uncertainty.
What makes a 30 year fixed rate mortgage secure? Think about 360 predictable, consistent and equal mortgage payments. Over the entire 30 years, mortgage payments remain the same. Every month, the homeowner knows exactly how much to budget for the house payment.
Not only does the mortgage payment remain steady for 30 years, the interest rate also never changes.
The 30 year fixed rate mortgage is fully amortized over 30 years which means it is completely paid off after 360 monthly payments.
As with most amortized home loans, more interest is paid in the early years and less principal is paid down. In other words, the balance of the mortgage does not decrease quickly in the first few years. But in the later years, the principal, or mortgage balance, decreases faster.
For example, to calculate payments, visit the Easy Home Mortgage Payment Calculator page. You can even view and print your own amortization schedule.
So if you are looking for the most popular, dependable, certain, predictable, consistent, and steady mortgage, the 30 year fixed rate mortgage may be just the mortgage for you.
Boring? Yes. But in this case boring is good. I'd prefer to call it the safe, even best, fixed rate mortgage. The King Of Mortgages.
Now go to 25 Year Fixed Rate Mortgage combining security with a slightly lower interest rate.
January 2016: The Mortgage Forgiveness Debt Relief Act Update.
September 2015: Fannie Mae and Freddie Mac Improve Loan Modifications.
Keep on the right path at A Homeowner's Survival Guide to the Intimidating Mortgage Process.
Please come back and visit often. Tell your friends about The 30 Year Fixed Rate Mortgage Program.
Aug 11, 16 10:49 AM
Aug 11, 16 10:18 AM