Conventional 30 Year Fixed

30 year fixed loans offer an interest rate that is fixed and not subject to change. Also, lower payments over the course of 30 years. 

How Do 30 Year Fixed Loans Work | Who Do They Benefit The Most

Basically, you’ll pay off your mortgage in 30 years. Even though over time you will pay more interest in comparison to a 15 year fixed loan, your monthly payments will be lower. 

Your interest and principal payments won’t change over the life of your loan. However, the amount for your taxes and insurance can go up and down. 

Depending on your down payment, you may need to pay for mortgage insurance. Also depending on the amount of equity you have if you’re refinancing. 30 year fixed loans work best for those who want lower monthly payments and an interest rate that won’t change over the course of the entire loan. Read more about other benefits down below. 

How To Qualify For A 30 Year Fixed Loan

• A minimum 3% down payment

• A minimum FICO Score of 620

• A debt-to-income ratio (DTI) not exceeding 50%. You can estimate your DTI by adding your monthly payments (debt) and dividing by the total monthly income you bring in before taxes. 

• Must need finances to cover the closing costs, which range from about 2%-6% of the purchase price. 

30 Year Fixed Loan Benefits

• With a 30 year fixed loan compared to a 15 year fixed loan, your monthly payments will be lower. Your interest rates for a 15 year will be lower in comparison with the 30 year fixed loan because your payments will spread out over a longer period. 

• You can fully pay off your mortgage at any time without penalties. 

• If you put down a payment of 20% or higher, you may be able to avoid mortgage insurance. 

• The interest rate is fixed for life. So you won’t have to worry about rates rising. 

• You can purchase your primary home with as little as 3% down. 

• You can also refinance your primary home for up to 97% of its value. 

30 Year Fixed Loan Requirements For Your Property

• You’ll have to pay primary mortgage insurance (PMI) as long as your down payment is less than 20%.

• Typically the costs range from 0.5% and 1% of the loan amount per year over 12. 

• The PMI is often cancelled automatically once you reach 22%. 

• Once you reach 20% equity of your home, it is possible for you to request a cancel of PMI. 

Why Choose Tampa Bay Home Mortgage

Tampa Bay Home Mortgage is ready and willing to provide quality service to those in need. We treat each need in accordance to the person and their needs. Choose us today!