An Honest Look At 30-Year Fixed Mortgages
30-year fixed mortgages offer a fixed interest rate and lower payments spread over 30 years.
"Who Are 30-Year Fixed Loans Suitable For?"
If you’re looking for low monthly payments and a fixed interest rate, a 30-year fixed mortgage might be your best choice.
"How Do 30-Year Fixed Loans Work Exactly?"
By choosing a 30-year fixed-rate loan, you’ll have your mortgage paid off in 30 years.
You’ll pay more interest over the life of the loan than a 15-year fixed loan, but your monthly payments will be lower.
Your interest rate will be locked for the life of your loan. This means that your interest and principal payments won’t ever increase or decrease.*
Paying for mortgage insurance is often needed, but this depends on your equity and down payment size.
*The amount you pay for insurance and taxes can still go down or up.
"How Do I Qualify For A 30-Year Fixed Rate Mortgage?"
- A down payment of at least 3%.
- A FICO® Score equal to or higher than 620.
- A DTI, or debt-to-income ratio, equal to or lower than 50%. Calculate your DTI by adding monthly debt payments (for example credit card and/or car payments) and simply divide the total amount by your monthly income before taxes.
- Enough cash to cover costs for closing, which are roughly 2 – 6% of the total purchase price.
Take the first step with Crown Mortgage of the West.
Call us now to get personalized recommendations about a 30-year fixed mortgage, or to discuss different options.
30 Year Fixed Mortgage Rates
Conforming 30 Year Fixed
30-year Fixed-Rate Loan:
The following is true given an interest rate of exactly 3.99% (4.263% APR) as the cost of 2.125 point(s), a total of $4,250.00, paid at closing.
On a mortgage of $200,000, you would have to make monthly payments of $953.68*.
*This price does not include insurance premiums or taxes. The total amount would be higher. This payment example assumes a LTV, or loan-to-value, of 74.91%.
30-Year Fixed Loan Benefits
- Your monthly payments will be less for a 30–year fixed loan compared to a 15-year fixed loan. This is actually true even if interest rates for a fixed 15-year loan are generally lower. That’s because your payments will be split over a longer time period.
- You’ll be able to pay off the mortgage at any point without any prepayment penalties.
- You might be able to avoid insurance with a down payment equal to or higher than 20%.
- You have a fixed interest rate for the life of the loan. You won’t have to worry about the rate suddenly increasing. You don’t need that kind of stress in your life.
- You’ll be able to buy a primary home with only 3% as a minimum down payment.
- You’ll have the ability to refinance the primary home. You can do this for up to 97% of its appraised value.
The Mortgage Insurance Requirements
PMI, or primary mortgage insurance, is required if you have a down payment of less than 20% on your 15-year fixed-rate mortgage.
- This usually costs you 0.5% – 1% of the loan amount per year, and is spread over 12 payments.
- When you have 20% equity or more in home equity, you can request to cancel PMI.
- PMI is usually cancelled by itself once you surpass 22% home equity.
Why You Should Choose Crown Mortgage of the West
- You’ll get access to an online application process, which saves you paperwork.
- Our Home Loan Experts will be there to answer questions and concerns, and to help you get clear on all the details so you get the perfect mortgage for your needs.
- After you’ve closed the home loan, you’ll be able to manage your mortgage online without any hidden fees.
- You can expect customer service long after you’ve closed. You see, we service around 99% of all our mortgages.
Here's What Other Homeowners Like You Have To Say About Us
Consent to Communication:
You’re also consenting to having Crown Mortgage of the West, our partner companies, and our Family of Companies, reach out to you about your inquiry through a text message or a phone call*.
We’ll call the cellular or residential telephone number you’ve provided with us. We’ll do this even if your telephone number is on a corporate, state, or national Do Not Call Registry. You’re NOT obliged to receive such messages or calls as a condition of saying yes to our services, or the services of our affiliates.
When you’re talking to us over the phone, you’re consenting to the call being monitored and recorded. You’re also agreeing that we can share the personal data and contact information you’ve provided with us. We can share this information with third parties, including our mortgage partners, affiliates, or partner companies. The stated parties are allowed to use your contact information and personal data for analytic and marketing purposes. They may also use the information to improve your experience.
*This includes an automatic telephone dialing system or a prerecorded or artificial voice.
Keep the following in mind:
- Mortgage rates are in constant flux.
- Your actual mortgage payments will vary. This is based on your individual situation as well as current rates.
- Certain products may not be available in every state.
- Certain jumbo products are unavailable to first-time homebuyers.
- Lending services are unavailable in some areas.
- Certain restrictions could apply based on your location and situation.
- Unless stated otherwise, we assume a refinance or purchase of a primary residence without a cash-out at closing.
- Unless stated otherwise, we’ve assumed the following: all costs associated with closing are paid out of your pocket; it’s your primary residence and it’s a single-family home; your debt-to-income ratio (DTI) doesn’t exceed 30%; your credit score is greater than 720 (for certain jumbo products, we assume a credit score of 740 or higher.
- You have a 40-day lock period for your mortgage rate.
- If LTV > 80%, PMI will be added to your monthly mortgage payment, with the exception of Military/VA loans (these loans don’t require PMI).
- Keep in mind that we don’t have all the necessary information to make an accurate assessment if you don’t contact us. At Crown Mortgage of the West, we offer a wide selection of home loan options. Do you want more precise and personalized results? Call us at (805) 434-5226 right now, and speak to one of our mortgage experts.