30 Year Mortgage


30 Year Mortgage

30 Year Mortgage

A 30 year mortgage loan is considered to be a home or mortgage loan that can be paid off within a 30 year time period. A 30 year mortgage loan is considered to be the most popular when a borrower is considering what type of home or mortgage loan that they would like to obtain. In most cases, a 30 year mortgage loan will usually have a fixed monthly payment and a fixed interest rate for the life of the 30 year mortgage loan. A 30 year mortgage loan is also considered to be the most affordable mortgage for most borrowers since the payments of the mortgage loan are spread out over 30 years.


A 30 year mortgage loan can have some advantages and disadvantages. When it comes to advantages, there are usually two main advantages to why people would want to obtain a 30 year mortgage loan. The first advantage is that most individuals that apply for a 30 year mortgage loan, like knowing what their principal and interest payments will be throughout the entire length of the loan. The monthly payment will only adjust when there is a change to your property taxes or homeowners insurance. Another advantage of having a 30 year mortgage loan is it will keep the payments and more affordable than a shorter term loan. When it comes to disadvantages of a 30 year mortgage loan, the main disadvantage of a 30 year mortgage loan is if the interest rates go lower, then the borrower will not be able to take advantage of the reduced mortgage rates without having to refinance into a new loan, which could be costly for the borrower. One last disadvantage of a 30 year mortgage loan is that the interest rates will be slightly higher than a shorter term loan or an adjustable rate loan. Borrowers who want to stay in their home for a longer period of time will most likely choose a 30 year mortgage loan.