Mortgage interest rates on a 30 year fixed refinance are usually slightly higher than the interest rates on mortgages with shorter terms.
Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.
A 30-year fixed loan means the payments are amortized over a 30-year period.
It is always a good idea to ask your loan officer what options you have. Depending on the situation, a 30 year fixed mortgage may not be your best option. Because the interest rate will generally be slightly higher on a fixed mortgage compared to an adjustable rate mortgage, the payment will also be higher. Talk it over with your mortgage professional. He or she should lay the options out for you, and together you can decide whether a fixed rate or an adjustable rate will be your better choice.
Rates on 30 year fixed rate mortgages are however becoming increasingly competitive with ARM Adjustable Rate Mortgages, especially for borrowers with average to excellent credit.
30 Year Fixed Rate mortgages can be excellent refinancing tools for borrowers whose ARM Adjustable Rates are nearing the end of the fixed period, and are about to begin adjusting upwards, often substantially so.
30 Year Fixed loans have come a long way, some offering minimum payment options and interest only options which were once only available on exotic Option ARM mortgages, so more and more you don't have to give anything up to go with a 30 year fixed rate, and you gain security and stability. 30 year fixed rates are an option to consider, but in order to determine whether or not a 30 year fixed rate mortgage, with or without a cash flow option, is a good fit for your personal financial situation, you should consult a financial professional with specific expertise in fixed rate refinancing.