30 Year Mortgage

30 Year Mortgage

A 30 year mortgage loan is a home or mortgage loan that can be paid off in a 30 year time period. A 30 year mortgage loan is the most popular mortgage loan when a current or potential homeowner is considering what type of home or mortgage loan that they would like to obtain. In most cases, a 30 year mortgage loan will have a fixed monthly payment and a fixed interest rate for the life of the 30 year mortgage loan. A 30 year mortgage loan is also considered to be the most affordable mortgage loan for most current or potential homeowners since the payments of the mortgage loan are spread out over 30 years.


A 30 year mortgage loan has some advantages and disadvantages. When we are looking at the advantages of a 30 year mortgage loan, there are usually two main advantages to why current and potential homeowners would want to obtain a 30 year mortgage loan. The first main advantage would be that most current or potential homeowners that apply for a 30 year mortgage loan, like knowing what their principal and interest payments will be throughout the entire length of the 30 year mortgage loan. The monthly payment will usually only adjust when there is a change to your property taxes or homeowners insurance. One other main advantage of having a 30 year mortgage loan is it will keep the payments more affordable than a shorter term loan. Now comes the disadvantages of a 30 year mortgage loan, one main disadvantage of a 30 year mortgage loan is if the interest rates go lower, then the current or potential homeowner will not be able to take advantage of the reduced mortgage rates without having to refinance into a new mortgage loan, which could be costly for the current or potential homeowner. One last main disadvantage of a 30 year mortgage loan is that the interest rates will be slightly higher than a shorter term loan or an adjustable rate loan. Current or potential homeowners who are looking to stay in their home for an extended period of time will most likely choose a 30 year mortgage loan.