30 year fixed mortgage rates today may be one of the most preferred mortgage options, but to those who have not yet understood what fixed mortgage is and the options that come with it may just be as confused as they were prior to reading this article. Fortunately, you have come to the right place for we are going to give you everything you need to know about 30 year fixed mortgage to help you determine whether the advantages that come with taking this longest term of mortgage outweigh the disadvantages.
It is our nature as a human being to always search for the best deal that does not only give us a large number of benefit, but also one that best suits our needs. However, before we go further on the topic, let’s see what 30 year fixed mortgage rates today looks like and whether or not it is the ultimate mortgage for you. Many of us know what mortgage is for and the reasons why we must consider taking a mortgage as opposed to purchasing a property outright during this difficult time, however, not a lot of us have the adequate understanding on what it stands for. Fixed mortgage is a term that is used to refer to a type of loan which its interest rates stay the same for as long as the duration of the loan – in this case, for the next 30 years, you do not have to worry about an inflated interest rate which may force you to foreclosure.
As an example, with the assumption of interest rate of 5.75% and a mortgage of $300,000 – homeowners are required to pay about $2,357 each month and until the end of their mortgage duration, the interest rate quoted to them will stay the same.
Homeowners with a fixed deduction taken from the monthly income, or those who cannot afford to pay an extra amount of interest rate should there be changes or fluctuations are the ones that will benefit from the mortgage plan. Fixed mortgage rate is not exclusively tied to index, hence its immunity to fluctuative rates. Not only does the 30-year fixed mortgage give you a flat rate, it also provides you with tax deduction and should the rates drop along the way, you may always choose to refinance. However, it’s worth noting that this fixed conforming rate is generally for loan for up to $417,000 – those who are taking a loan of more than the aforementioned traditional limit may have to adhere to 30 year jumbo mortgage rates and conditions.
The conforming30 year fixed mortgage rates today is generally hovering at 4% mark. Below is a chart of 30 year fixed rates offered in the market:
- A conforming loan with the interest rate of 4.250% and annual percentage rate of 4.290% for a loan of up to $200,000. The required amount of down payment is set at 25% with monthly payment including interest of $984.
- FHA quotes an interest rate rate of 4.250% and annual percentage rate of 5.291% for a loan of up to $200,000. The required amount of down payment is set at 3.5% with monthly payment including interest of $1,142.