30-Year Fixed-Rate Mortgage: Pros and Cons

2 Min Read
Published June 8, 2022
Homebuyer researching in her apartment about the pros and cons of a 30-year fixed-rate mortgage.
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Almost 90% of modern homeowners have a 30-year fixed-rate mortgage. What is a 30-year fixed-rate mortgage, and what makes it so popular?

With this kind of loan, you get 30 years to repay your mortgage, and the interest rate stays the same for the entire 30-year term. As a result, your monthly payment toward principal and interest doesn’t change, allowing you to budget with greater accuracy.

Choosing a longer loan term also means your monthly payment will be lower compared to a mortgage with a shorter term, because you have more time to repay the loan amount. That’s why a 30-year mortgage is ideal if you want to keep your payments affordable.

At the same time, a 30-year loan term has its downsides. Let’s break down 30-year mortgage pros and cons:

Pros and Cons of a 30-Year Mortgage

Benefits of a 30-Year MortgageDrawbacks of a 30-Year Mortgage
Smaller monthly mortgage paymentHigher interest rates
Greater flexibility to put money toward other financial goalsMore total interest paid
Can afford to borrow more compared with a 15-year mortgageTakes longer to build equity and fully own your home
Bigger mortgage interest deduction if itemizing at tax timeCould end up paying more if you’re planning to move soon

30-Year Mortgage FAQ

Check out the answers to some frequently asked questions about 30-year mortgages.


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