30-Year Fixed

The conventional, 30-year fixed rate mortgage loan is the most common of all loans. With it, the interest rate doesn’t change during its 30 year life, making it very popular for those looking to purchase their “forever homes.”

Because the interest rate for this loan is fixed for 30 years, it’s important to strive for the lowest interest rate possible. The 4 factors buyers have control over in this regard are their down payments, incomes, monthly debts, and credit scores.

So, when buyers are looking to purchase homes with this loan type, it’s best to make down payments as large as can be afforded, and work on keeping credit scores as high as possible. That being said, time should be taken to get prepared and ready to make the absolute best purchase.

However, for those who don’t have the funds for sizeable down payments, it’s feasible to purchase a home with just 3% or 5% down depending upon the purchase price of the home. It’s even possible to have a loan structured with a $0 down payment and up to 3% of the loan amount provided for loan costs/prepaid expenses. For instance, a $600,000 loan would result in $18,000 being provided for this purpose!