Save with 30-year mortgage rates?

People are unlikely to look back at the Great Recession with fond nostalgia. However, for those buying a home or refinancing now, times couldn't be better to secure a long-term mortgage, as 30-year mortgage rates have hovered near record lows.

A fixed 30-year mortgage is the most popular form of financing, mainly because it lowers the payments by spreading the loan amount out for more years.

The current 30-year mortgage rates have been especially attractive to people who plan on staying in their homes long term.

Mortgage term should match goals

Before taking out a mortgage, ask yourself one question: "What are my long-term debt goals?" If you plan on staying in your home long term and have years to plan and save for retirement, a 30-year mortgage may be the right plan for your situation.

If you are nearing retirement and want to eliminate debt as quickly as possible, a shorter-term loan such as a 15-year fixed-rate loan or an adjustable-rate loan may be more attractive to your situation. This mortgage calculator will help you decide if a 15-year fixed-rate mortgage or 30-year fixed-rate mortgage is best for your needs.

Another mortgage calculator can help you decide whether to choose a fixed-rate mortgage or an adjustable-rate mortgage.

When looking for a loan, make sure to examine 30-year mortgage rates and your own situation -- for example, how long you intend on staying in your home and if you want to build equity during that time. With the right tools, you can decide if the current 30-year mortgage rates fit your budget and goals.

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