30-YEAR
FIXED LOANS
30-year fixed loans offer a fixed interest rate and I ower payments spread over 30 years.
30-YEAR
WHO 30-YEAR FIXED LOANS ARE BEST FOR
People who want lower monthly payments and an interest rate that never changes over the entire life of the loan. Read more about other benefits below.
HOW 30-YEAR FIXED LOANS WORK
You’ll pay off your mortgage in 30 years. Although you’ll pay more interest over the life of the loan compared to a 15-year fixed loan, your monthly payments will lower.
Because your interest rate is locked for the life for the life of your loan, your principal and interest payment won’t change over the life of your loan. The amount for your taxes and insurance can go up and down.
You may have to pay for mortgage insurance, depending on your down payment amount if your buying a home, or how much equity you have if your refinancing.
WHAT YOU’LL NEED TO QUALIFY FOR A
30-YEAR FIXED LOAN
- A minimum 3% down payment.
- A minimum FICO Score of 620.
- A dept-to-income ratio (DTI) of no more than 50%. Estimate your DTI by adding
your monthly dept payments (such as credit card and car payments) and dividing the total by your monthly income before taxes. - Money to cover closing costs, which are about 2% – 6% of the purchase price.
TAKE THE FIRST
STEP TOWARD THE
RIGHT MORTGAGE.
Apply online with Houz Mortgage or enter some
into to get a call from a Home Loan Expert. You’ll
get a personalized recommendation on which
loan option is best for you.
15-YEAR FIXED
MORTGAGE RATES
| PRODUCT | RATE | APR |
|---|---|---|
| Conforming 15 Year Fixed |  3.375% | 3.631% |
DISCLAIMERS
30-YEAR-FIXED-RATE MORTGAGE:
The payment on a $200,000 30-year Fixed-Rate Loan at 3.375% and 74.91% loan
-to-value (LTV) is $884.2 with 2.00 points due of closing. The Annual Percentage
Rate (APR) is 3.631%. Payment does not include taxes and insurance premiums. The
actual payment amount will be greater. Some state and country maximum loan
amount restriction may apply.
30-YEAR FIXED LOAN BENEFITS
- Your monthly payments will be less for a 30-year fixed loan than a 15-year fixed loan, even though interest rates for a 15-year fixed loan are generally a little lower. That’s because your payment will be spread out over a longer period.
- You can pay off your mortgage at any time without prepayment penalties.
- You may be able to avoid mortgage insurance with a down payment of 20% or higher.
- Your interest rate is fixed for the life of the loan, so you don’t have worry about rising rates.
- You can buy a home with as little as 3% down.
- You can refinance your home for up to 97% of its value.
MORTGAGE INSURANCE REQUIREMENTS
You’ll have to pay primary mortgage insurance (PMI) if your down payment is less than 20%.
- This typically costs between 0.5% and 1% of your loan amount per year, spread over 12 payments.
- Once you reach 20% equity in your home, you may be able to request to cancel PMI.
- PMI is often cancelled automatically once you reach 22% equity.
READY TO APPLY?
