A 30-year fixed-rate mortgage keeps your principal-and-interest payment the same for the whole term. Spreading the loan over 360 months gives you the lowest monthly payment of the fixed options, which is why it is the most common choice for buyers who want room in the monthly budget.
Highlights
- Predictable principal-and-interest payment
- Lower monthly payment than shorter terms
- Easy to plan around for the long haul
- You can still pay extra toward principal when you want
Keep in mind
- You pay more total interest than on a shorter term
- Rates are usually a little higher than 15-year loans
Who it suits
Buyers who value a steady, comfortable payment and plan to stay put for several years.
Eligibility, rates and terms vary by borrower, property and state.