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The most popular fixed mortgage available in the US is the 30 year loan. 30 year mortgages provide the buyer with lower monthly payments and a stable interest rate, allowing buyers to invest in more expensive properties.
Why are 30 year loans the most popular?
Because the loan is repaid over a longer term, the interest rates are higher and therefore the overall payment is larger. However, lower monthly payments give buyers some flexibility in terms of monthly budgeting if they anticipate any job instability. Rates and terms typically depend on factors such as credit score, property location, down payment size, and federal loan eligibility.
30 year mortgages have a simple online application process
The application process might seem complicated, but most loan sites offer quotes on the spot with a simple two-step process. For the first part, you’ll be asked to enter some general information like your name, DOB, home address, email address, house location, house price, down payment, and credit score.
30 year loans require straightforward paperwork
Once you pre-qualify, the lenders will ask for a few more details including but not limited to: proof of income, proof of assets, disclosure of debts, and tax paperwork. Don’t worry, applying for a mortgage online will still give you the opportunity to speak to a loan officer.
You still have flexibility with a 30 year mortgage
You can pay your 30 year mortgage off early, and it can be a great financial decision which can save you a lot of money over time. You can do this by making more frequent payments, by paying larger amounts, or by refinancing.
In summary
30 year loans cost more over time but keep your monthly payments low. Applying online is simple, and the information you need to present is straightforward. Have a dream house in mind? Compare your 30 year mortgage offers here.