Rates on 30 year fixed mortgages are set and will not change for the life of your loan, up to 30 years or until you refinance or pay off the loan.
The 30 year fixed mortgage can be ideal for homeowners with fixed income, however most borrowers are in their homes for approximately 7 years before they refinance or move to another property. Consider these statistics when you are considering to refinance.
The 30 year fixed rate mortgage loan is one of the most common types of mortgage loan available. Many consumers go ahead with a 30 year fixed rate mortgage loan because they like the security of knowing that their interest rate will not change over the life of the loan. A 30 years fixed mortgage rate loan also gives a homeowner the flexibility of being able to spread their mortgage payments out equally over a 30 year period of time versus going ahead with a 10, 15 or even a 20 year mortgage loan.
While a 30 year fixed rate mortgage is good for the long haul it's also important to understand that it may not be the best mortgage for every circumstance. Generally speaking, the rate on a 30 year fixed will be higher than for other types of loans due to the fact that the lender is committing to the investment for a long period and must take into account that the market will rise and fall many times over the course of 30 years.
Conforming 30 year fixed mortgage rates are still relatively low. They offer borrowers stability over time. If you plan on keeping your home for at least 5 years a 30 year fixed rate may be a great product for you.