30-Year Fixed-Rate Mortgage
The 30-year fixed home mortgage is a classic, tried and true, loan option when you’re in the market for a house here in Cumberland. A conventional 30-year mortgage has allowed millions of people to fund homeownership. If you’re looking for a home in the Allegany County, MD, area, this traditional home mortgage can keep your house payment affordable throughout the coming years.
Basic Elements of the 30-Year Fixed-Rate Mortgage
This 30-year fixed mortgage option is popular for a reason—there is great security in knowing that your monthly housing costs are fixed over time. The total monthly payment stays constant, however the way the payment is allocated changes during the loan term. Your payment moves from being applied mostly to your home loan interest at the beginning. As you continue paying, the percentage of your monthly payment going toward the principal increases. You build equity in your home more quickly as time goes on.
30-Year Fixed-Rate Home Loan Benefits
The predictable monthly payment and interest rate are perhaps the best features of this mortgage option. With housing costs staying at the same level, it makes family budgeting for everything else much easier. With payments spread out over a 30-year term, they are more affordable than they might be with a shorter mortgage length. Over time, most homeowners with a 30-year fixed see their mortgage payment become more and more of a bargain, compared to prevailing home prices and payments.
By choosing a fixed-rate mortgage, you can also protect yourself from rising interest rates. If mortgage rates should become significantly lower, you could refinance your mortgage so you don’t miss out. In addition, the mortgage interest you pay may tax be deductible. (Tax regulations change from year to year and depend upon your specific situation, so always consult a tax expert for advice.) What’s more, with a 30-year mortgage, you may qualify for a larger loan (and more house), than you might with a shorter mortgage and its higher monthly payment.
30-Year Mortgage Origins
What did prospective homebuyers do before there was a 30-year fixed mortgage? Prior to the 1930s, only variable interest mortgages were available. These loans had very short repayment schedules, requiring the mortgage to be paid off in 3 years or 5 years. That meant a large lump sum house payment due at the end of the term for most people. The only alternative was to take out a new mortgage and keep repeating the same process. Defaults on home loans were common.
This kept many people out of the housing market and home-building slowed as well. To help the economy get back on track after the Depression, the government began guaranteeing loans, lowering the lender’s risk so that banks could offer more loan types. Soon, longer loans were available at a fixed rate for up to 30 years.
Is the 30-Year-Fixed Mortgage for You?
If you’re a first-time homebuyer, spreading payments over 30 years gives you budget flexibility that could let you get into your first home at an earlier age. The reasonable monthly house payment leaves you with funds for all the other essentials of life. You can use your other income to pay off higher interest credit cards or invest, for example. The fixed 30-year home loan also lets you keep your payment low for decades to come. Whether you consider this your forever home or plan to sell and trade up (or downsize your home) later in life, the 30-year fixed mortgage could be ideal.
The Easiest Way to Apply for a 30-Year Fixed Mortgage
At Homespire Mortgage, our team is dedicated to helping you find the right mortgage. Get all the details about the 30-year fixed-rate home loan with dependable monthly payments and other mortgage options. Our streamlined process makes applying for your home loan as simple as possible. We serve the local areas of Frostburg, MD, Cumberland, MD, Lonaconing, MD, and Westernport, MD from our headquarters in Cumberland. In WV, we provide mortgages in Short Gap and Keyser, and in PA we serve the Bedford areas.
Contact Homespire Mortgage to find the best home loan for your needs – today!