Whether you’re buying a home or refinancing your current mortgage, knowing what to aim for will help you get the best deal.Get current interest rates for 30-year fixed-rate mortgages here. Be sure to check back regularly, as rates change.
What is a 30-year fixed-rate mortgage?
A 30-year fixed-rate mortgage is a home loan that has a fixed interest rate for a term of 30 years and a stable monthly principal and interest payment. With a fixed-rate mortgage, your monthly payment won’t change (outside of property taxes, homeowners insurance premiums or homeowners association fees).
Today’s 30-Year Mortgage Rates
|3-month trend||30-year fixed rate||30-year jumbo|
A guide to 30-year fixed rate mortgages
What are the advantages of a 30-year fixed-rate mortgage?
With a 30-year fixed-rate mortgage, you’ll have the same monthly principal and interest payment throughout the life of your loan. You’ll never have to worry about your payments spiking when rates increase, unlike adjustable rate mortgages, or ARMs – hence the term “fixed-rate.”
Your monthly payments also will be lower with a 30-year loan than with a shorter-term fixed loan, which may help you afford more house. Borrowers who have tighter budgets tend to favor a 30-year loan because it offers more predictability and a lower monthly payment than a 15-year fixed-rate mortgage.
Some buyers prefer a longer loan with shorter monthly payments so that they can invest the extra money elsewhere. This scenario might make sense if you can earn more in investments (stocks, real estate) than your interest rate costs.
What are the disadvantages of a 30-year fixed-rate mortgage?
The most significant drawback of a 30-year fixed-rate mortgage is the amount of interest you’ll pay. Mortgage rates tend to be higher for 30-year loans than 15-year loans. So, although your monthly payments will be less than someone with a shorter-term loan, you’ll pay more in interest in the long run.
For example, with a 15-year fixed-rate mortgage, you’ll slash your repayment time in half and save significantly on interest in the process.
Compare how much interest you’ll pay on 15-year and 30-year loans with Bankrate’s 15-year or 30-year fixed mortgage calculator.
Interest Rate Showdown: 15-year mortgage vs. 30-year mortgage
|15-year fixed mortgage||30-year fixed mortgage|
|Interest paid over first 5 years||$34,881||$43,118|
*Interest rates differ because 15-year fixed rate mortgages typically have lower interest rates than a 30-year fixed rate.
Your monthly payments are $466 lower with a 30-year loan, but you pay an additional $98,525 in interest over the life of the loan compared with a 15-year loan.
Don’t forget to factor in property taxes, mortgage insurance (if you put less than 20 percent down), homeowners insurance, HOA fees, utilities and maintenance expenses when setting your monthly housing budget.
Remember that the mortgage rate you qualify for varies depending on your down payment amount, credit profile, income and other factors. Learn more about how to get the best mortgage rate.