30 Year Mortgage Rates

Since 2008, homeowners and new home buyers have been seriously considering the options made available to them with mortgage rates. There are many different kinds of mortgage rates that people can use, and the goals of a borrower will dictate what type of mortgage will be right for them. There are variable mortgage rates, fixed mortgage rates and adjustable mortgage rates. These are the 3 most popular types of mortgages that people are after when purchasing or refinancing a home. However, there are more options than just interest rates that will attract the attention of a new home buyer or a homeowner who is refinancing their home.

The three popular types of mortgage rates are typically available in 15 year and 30 year time periods. 30 year mortgages are among the most popular type of mortgage for a number of reasons. First off, a 30 year mortgage will have a significantly lower monthly payment than a 15 year mortgage. This is because a 30 year mortgage spreads out the payments on the mortgage over a longer period of time. Most new home buyers will choose a 30 year mortgage for the reasons of lower payments. However, home shoppers should be aware of the interest rate on a 30 year mortgage.

While a 30 year mortgage has a lower monthly payment, 30 year mortgage rates are typically higher than a 15 year mortgage rate. The good news is that 30 year mortgage rates are currently at an all time low, making it a buyer’s market. The reason why mortgage rates are at an all time low is because lenders are attempting to stimulate the housing market. Housing prices are also pretty low, all in an attempt to attract new buyers. This current low market is directly influenced from the housing market crash of 2008, and many speculators state this trend will continue for a couple more years.

The big question a home shopper must ask themselves is if a 30 year mortgage will be right for them. If a homeowner is planning on staying in the home for the life of the mortgage, then they are advised to get a 30 year fixed rate mortgage. 30 year mortgage rates that have a variable interest rate aren’t necessarily a good idea. A variable interest rate mortgage will have an interest rate that is fixed in the beginning of the mortgage. However, after this fixed rate period is over, the interest rate on the mortgage can rise to levels that are above a traditional fixed rate mortgage.

15 year mortgage rates are typically for those who either are planning on paying off their mortgage early, or for those who are not planning on staying in the home for too long. In this case, home buyers will get a variable interest rate on their 15 year mortgage with plans to pay off their mortgage before interest rates go up on the home loan. 30 year mortgage rates are typically for those who are budgeting for long term investment goals.

Homeowners who are interested in refinancing their current mortgage are often looking for a way to save on their monthly house payment. In this case, most homeowners will want to refinance their current mortgage with a 30 year mortgage in order to stretch out the payments over a period of time. This will effectively lower the homeowner’s monthly payments on their home loan. Many homeowners are doing this because of inflation and other economic conditions that are making it difficult to make it from month to month. Now is the time not play with variable interest rates, and homeowners are advised to refinance their home with a fixed interest rate in order to avoid future financial disaster.