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30-Year Fixed-Rate Mortgage

A home is not just a place to live in; it’s an investment for your future. This traditional loan type can protect you from whatever unseen changes in the economy lie down the road.

Put Down Your Roots

The 30-year fixed-rate mortgage suits people who are ready to settle down with a steady income and a stable lifestyle.

You’ve found a home you love and a community where you can thrive. You know you’re not going anywhere, and you want a mortgage payment that will fit easily in your budget — this month, next month and thirty years from now.

Ensure an Affordable Future

There’s no better loan option if you want to enjoy the same low monthly payment for the entire time you are paying off your home.

The long term of this mortgage allows you to spread the amount of the loan across 360 payments, and the fixed interest rate keeps those payments at the same basic level, no matter what happens with bank lending rates, the real estate market or inflation. You are protected from rising rates while still having the ability to refinance your mortgage if rates go down.

Is a 30-Year Mortgage right for you?

Speak with one of our experienced senior loan officers today about buying or refinancing a home.

Choosing the Right Loan

Scenario 1

Christine is living on a teacher’s salary, so she was excited to find out that with a 30-year loan her mortgage payment could be lower than what she had been paying for rent every month. Christine had also considered an adjustable rate mortgage, or ARM, because of its even lower payments during the introductory period, but because she has every intention of making this purchase her “forever home,” she decided to stick with the security of a fixed rate.

Scenario 2

On the other hand, when empty-nester Angela sought a mortgage for cash-out refinancing, she started out looking for a fixed-rate mortgage but then realized that an ARM made more sense for her because she plans to sell her home in a few years after all her renovation projects are finished.

Scenario 3

Sarah isn’t as sure about her long-term plans as Christine and Angela are. She knows that a 30-year fixed-rate mortgage is the traditional option, but she’s also heard that there are ways to save money with other loan options. The advice of a dedicated Loanwise specialist will make it easier for her to decide.

The Birth of the Modern Mortgage

Nowadays we think of the 30-year fixed-rate mortgage as the most traditional type of home loan. Less than one hundred years ago, though, such a borrower-friendly loan like this was totally unheard of.

Up through the 1920s, most mortgages had variable rates and terms of 5 or 6 years at most. Your down payment had to be 50 to 80 percent of the purchase price, and worst of all, your mortgage payments only covered the interest — at the end of the loan, you had to pay the whole principal amount in one big balloon payment!

In the 1930s, the Great Depression changed everything. Part of the Roosevelt Administration’s plan to pull the country out of depression was the creation of the Federal Housing Administration in 1934. The FHA set standards for mortgage lending that led to reforms throughout the whole industry, and the original FHA loan program became a model for the private sector to follow.

The 1940s saw the rise of the modern conventional mortgage, thanks in large part to America’s victory in World War II. The VA loan program created as part of the GI Bill of 1944 reinforced the trend toward mortgages with a lower down payment, a long 30-year term and a fixed interest rate.