30-Year Fixed-Rate Mortgage: Pros and Cons

By
FACT-CHECKED
Published June 8, 2022
Homebuyer researching in her apartment about the pros and cons of a 30-year fixed-rate mortgage.

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.

Ready for more learning?

Here’s some other helpful articles

Related Articles

**itsHome, a LMB Mortgage Services, Inc. company, is not acting as a lender or broker. The information provided by you to itsHome is not an application for a mortgage loan, nor is it used to pre-qualify you with any lender. If you are contacted by a lender or broker advertising within our network, your quoted rate may be higher depending on your property location, credit score, loan-to-value ratio, debt-to-income ratio, and/or other factors. itsHome does not offer its matching services in all states. This loan may not be available for all credit types, and not all service providers in the itsHome network offer this or other products with interest-only options. The information that we provide is from companies which itsHome and its partners may receive compensation. This compensation may influence the selection, appearance, and order of appearance on this site. The information provided by itsHome does not include all financial services companies or all of their available product and service offerings. We use cookies to track data and provide you with the best possible experience. By proceeding you consent to the use of these cookies. For more information, see our Privacy Policy.

itsHome, a LMB Mortgage Services, Inc. company NMLS #167283, www.nmlsconsumeraccess.org