We will be focusing on the 30-year fixed mortgage rates, but before we dive into that, we feel you should know the basics. So, what is a mortgage?

What is a mortgage?

A mortgage is a loan issued by a bank or other lender for the purchase price of a property, such as a house or a condo. The property purchased with the money then guarantees repayment of the loan balance through a lien on the deed. Once you’ve agreed to the terms of your fixed-rate loan, you will begin to make regular monthly payments until the debt is paid off.

Interest Rates

A mortgage loan balance is not merely the initial principle payment for your home, but also interest charged on the loan, home-owners insurance, mortgage insurance, and taxes. For that reason, though the interest rate is essential when considering the type of mortgage to go for, you should also factor in the annual percentage rate. It is a broader percentage that covers not just the interest, but other costs involved with the process, including the escrow fees. А bank account held by the lender that is used to pay off the mortgage insurance and property taxes is called an escrow.

Also Read: How to Find the Best Debt Consolidation Loan Rate

Outstanding Debts

Though mortgages are often associated with purchasing property, they are strictly speaking any loan issued with the property as collateral. If you have outstanding debts or wish to perform renovations, then taking out a mortgage may make sense. Having a mortgage on any property will usually require that you carry homeowner’s insurance, which is another cost that can add to the total amount that has to be paid back.

According to the Mortgage Bankers Association (or MBA’s) most recent campaign, the mortgage industry is more transparent and safer than it has been before. Therefore, there has never been a better time to invest in a home. We want to provide you with the information to ensure that that is actually the case.

What are 30-year fixed mortgage rates?

Since we have already covered what the basics of a mortgage are, it is now time to take a more in-depth look at the 30-year fixed-rate loan.

A 30-year fixed-rate mortgage is a type of mortgage loan that is issued assuming that it will be paid back within 30 years at a fixed interest rate. The interest rate offered can vary over time and from loan to loan but remains the same once you have signed for your loan. Fixed-rate home loans are not the only available mortgage products available. Some mortgage loans, such as adjustable-rate mortgages or ARMs, do not follow this principle, and you may find yourself with surprise costs if the interest rate rises.

Suggested Reading: Compare Mortgage Rates to Get the Best Deal

Example of 30-Year Fixed Mortgage

As an example, let’s say you have found your dream home selling for $300,000, and then commit to a 3.75% interest rate on a 30-year fixed-rate mortgage. When considering only the principal payment and the interest, you could expect to pay around $1,150 a month. With an adjustable-rate mortgage, you could commit to a 3% interest rate, which sounds like a great deal but one that may change over time. ARMs do offer an initial fixed-rate period, which can vary from 3-10 years. This option may work for you if you are looking for a loan and are confident in your ability to pay it back before that period expires.

ARM Risk

If the risk of an ARM is concerning, then now is one of the best times to get into a 30-year mortgage. Mortgages rates can fall, and right now they are at the lowest they have been for some time. The above rate of 3.75% is an actual example of today’s offerings (subject to your credit score) that you could expect from a lender. However, mortgage rates are expected to rise again at the end of 2019.

Short-Term vs. Long-Term Loans

A 30-year fixed rate is not the only fixed-rate term available. Shorter-term loans of 20 years and 15 years are also available.

Both long term and short-term loans come with their advantages and disadvantages.

A shorter-term loan comes with higher payments but lower mortgage interest rates. Short-term mortgages may be more appropriate than the 30-year ones if you don’t plan on keeping your real estate purchase for the long term. You might also prefer these terms because mortgage payments are expensive, and you may want to pay off your loan as soon as possible to save money in the long run.

Suggested Reading: What to Know About First-Time Homebuyer Grants

Remember These Facts

On the other hand, the longer-term loan rates will have lower monthly payments but a higher interest rate. Another benefit of the long-term loan is that, despite the fixed interest rate, you are allowed to increase the amount that you can pay monthly. The lower monthly payments with a 30-year loan will leave more room in your budget, which you could invest in the property or use to pay off other outstanding debts. However, those savings can also be used to pay off the loan faster.

If you find yourself with cash to spare, then you can put it towards your loan on top of your monthly payments, ultimately reducing the duration of the loan. Just be sure to check the terms of your particular loan, as some lenders do charge an early repayment fee. With any loan, you should consider not just the monthly payments but also the total of payments in the long-term.

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30 year mortgage rates

Getting the Best Deal on Your Loan

So, you have decided that a 30-year fixed mortgage is for you. You don’t want to deal with the higher payments that come with a shorter-term mortgage, nor the unpredictability of an adjustable-rate mortgage. Keep in mind that due to the higher interest rate, you will have to pay out more in the long run. Fortunately, we can help you lower that amount by giving you some tips to consider before signing your loan agreement:

Credit Score

The key to getting the best interest rate is your credit score, with the most popular version being the FICO score. Your interest rate is partially set based on the risk the lender is taking when the loan is issued. A high FICO credit score indicates that you are a responsible borrower. Paying bills on time, avoiding the need for debt collection and generally keeping outstanding debt low are all ways to improve your score.

As an example, on a 30 year fixed mortgage for $200,000 with a credit score of around 630, you can expect an APR of 5.77% with monthly payments at $1170. A credit score around 760 to 850 could secure you a 4.18% rate APR with monthly payments at $976. This means that you could save up to $70000 on your mortgage with a higher score. Start improving your credit score now!

Origination Fees

Following these tips will not only increase your credit score but may allow you to save money on your origination fee. An origination fee is paid to the lender for processing your application. These fees are negotiable and usually, cost between 0.5% and 1% of mortgage loans. You will have more power to negotiate the fee amount with better credit.

Loan-to-Value Ratio

In addition to your credit score, you should also pay attention to your LTV or loan-to-value ratio. Higher down payment will increase your equity in the property. Buyer’s equity is the amount of the mortgage that you have paid off plus your down payment, as opposed to what you still owe, which would be the lenders’ equity. Your LTV would then be at a lower ratio, and thus reduce the amount of money you need to pay back. An additional benefit to higher down payment is the possibility of not needing to pay for mortgage insurance. If you can pay over 20% of the principle house price, then you can avoid this insurance altogether.

Suggested Reading: 5 Easy Ways to Find the Best Mortgage Lenders

FHA Loans

Another way to save on your loan fees is to avoid a conventional mortgage or a loan issued by a private financial institution, altogether. Conventional mortgages come with higher mortgage interest rates when compared to a government-issued loan such as an FHA loan. This type of loan was designed for those with lower incomes and credit scores.

However, they are more restricted in more than just loan amounts compared to your standard mortgage. To qualify for an FHA loan, a lower minimum down payment is required. If that down payment is lower than 20% of the purchase price, you will have to pay monthly mortgage premiums on top of your regular mortgage payments. Another point to note that makes an FHA loan more restricted than a conventional loan would be that an FHA loan is only allowed for purchasing your primary residence. If you were looking to build a real estate investment portfolio, then this wouldn’t be an option for you.

VA Loan

Similar to an FHA loan in that it is issued by a government agency, in this case, the United States Department of Veterans Affairs. A VA loan is suitable for current and ex-service members, along with their surviving spouses. There is no insurance required, no down payment, and tax deductions are available. A lower interest rate is common with this type of loan. You can even apply for grants to help adapt a property to accommodate any permanent disability sustained during your service in the armed forces.

30 year mortgage rates

Conforming Loan

If a conventional mortgage is your only option, then it is in your interest to ensure that the lender is issuing a conforming loan. Conforming loans must adhere to set guidelines, with the most important criteria being the set loan limit. A conforming loan usually also comes with a lower interest rate than a non-conforming loan.

Suggested Reading: Common Mortgage Loans Explained

Refinancing Your Home

Refinancing is the process of getting a new mortgage, ideally at a lower interest rate and lower monthly payments. Most people would begin considering refinance applications once they have paid off a large portion of their current mortgage and hold significant equity in their property. Often as you work through your career, you can make more money and then pay off outstanding bills, which in turn increases your credit score.

As we discussed, a better credit score can secure lower interest rates and save you money. This option does not come without risks, however. There are additional fees needed for the application, so always check the terms of your new agreement to ensure you are really getting a better deal.

Are 30-year fixed mortgage rates right for me?

A long-term mortgage is one of the most popular choices available from mortgage lenders, and for a good reason: The fixed interest rate provides predictability and control to the borrower that you may not find with alternative loans.

Lower monthly payments make it more affordable to borrow this way as opposed to the shorter-term mortgages available, meaning less commitment of money each month. Even if the monthly payment amounts of short-term loans are not of concern to you, a 30-year mortgage may allow you to afford a more expensive house than you had initially planned on.

Also Read: How to Get Out of Debt Fast

Always Consider the Future

You do, however, need to consider your future plans. For example, you may wish to retire in 15 years and would much prefer to have the mortgage debt paid off before reaching that benchmark. Before considering any mortgage, you need to ensure that you have a way to provide the fees necessary to afford it in the long run. Mortgages are a commitment that will take up a large portion of your life. That’s why if you can take advantage of any of the tips we have provided above to achieve a better rate, then so much the better for you.

Next Steps

Will you be taking on a 30-year fixed-rate mortgage to join the growing list of homebuyers? After exploring the mortgage market, would you prefer a short term or long term loan? How helpful was this page in answering your question?

Any of you with a loan already, please do share your experience and tips for the new homebuyers.

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Mark strickland

If only dreams came true

Susan M Curtis

I just really need to refinance my home there are things i need to pay off and things about the loan i have now that need to be changed.

Ajaib Bhatti

Valuable article, appreciate Meara

Pamela Thoman

Why can’t mobile homes be mortgaged lol me a house some people lol be living in mobile homes I’ve lived in one for 30 years same neighborhood

Frankie Lott

I also own mobile home have lived some address for 12 yrs.

Veronica Alexander

I got behind on my house payments, it was going into foreclosure so I put the house and everything I owed in Bankruptcy. One payment and I get to keep my house after paying for 5 years.

Shannon Jones

How does bankruptcy work when it comes to the mortgage?

Martha A Menjivar

I didn’t know you could do that

Frank Powers

I am 63 years old am i to old to buy a home. Something around 100.000 or less

Nora Borosak

Hi Frank,

You’re never too old to chase your dreams! Check out the rest of our mortgage articles for some more tips. Thanks for reading!



Wow! I’ll be 64 in January I have the very same question.

Olivia Smith

Mr Frank I’m 60 and my husband is 61 last yr we bought our home, never too late

Delia Washington

My mortgage down south is 700 a month how can u help me pay it

Nora Borosak

Hi Delia,

Check out the rest of our mortgage articles for some tips! Thanks for reading!


Brenda L Martinez Guerrero

Thanks for the information appreciate it

Dominic romero (NYCKY)

Thank you Edwin for all of the useful information as my future would a much better one with a good investment that I would be able to gain equity and such instead of throwing money into a rent payment I did read it to my best understanding I would love to be able to do so with Hope’s that I am able to make credit score and the payment is within range of my financial needs i will look into these things to see if it possible and speak to someone who is familiar with this kind of obligation please… Read more »

Nora Borosak

Hi Dominic,

Thank you for reading and glad we could help! Check out the rest of our mortgage articles for more tips! Thanks for reading!


Polly Autry

I just bought a house with a low credit score but my payment history was good. I ended up getting a Grant from the Bank and I also paid my escrow which will help me in the long run. I didn’t have money for a down payment so I waited 2-3 months for the grant going for the FHA and a 30 year mortgage therefore my payment is actually cheaper than rent!! My Credit Score is getting so much better too!! Good Luck

Robert Thompson

Im going

Kevin Bethel

I just wanted to say that for anyone getting into the mortgage game, you just hit it out of the park. Excellent job Meara.

Jacqueline m Lind

Thank you for sharing your thoughts about this


Sounds great . But I refinance my home to early. Notice interest rates going down. I guess wait later to see if I get down. I have my house only 4yrs

Robert Turner

I like to try on line survey please

kylea campbell

Serveys I do,be sure of this,. A credit card with money serveys, Offer rewards, fact to close and collect them rewards two dollors is required,(golden or silver) deal. Worth it too.


I just Love the wealth growth Wisdom letter
Very healtful and, inspiring
Thank you

Yodadiah Jenkinez

Just looking for chip’ins on a down payment?!!


I am 64 my wife is 54 she want a short term I want a long term which is the best loan for us.


Thanks for the article info

Michele Graver

At 57years old would it make it easier to take out a twenty year ,for a home . with 15,000 or 20,000 for a home and can I still take a loan out. please let me know . thank you for this time

Christina millette

Yes, you can, As long as you can afford to pay it off with income coming in to you.

Michele Graver

thank you very much michele Graver

Michele Graver

what is it about?

Patricia A Collier

Thank ya boss Mr.Tim Hansen

Margart Elizabeth Liverman

I want to refinance my mobile home.it is paid up.

Emmitt Russell

This is nice to know thank you

Richie Ansley

Looking to relocate to Dallas

Valerie Sylvester

I would love to buy me a small home but I’ve been disabled for 30yrs can’t afford that.

Nora Borosak

Hi Valerie,

I’m very sorry to hear that! If you’re looking for ways to make money from home, we have a ton of articles that could lead you in the right direction. Thanks for reading!


Frances Jackson

I need to refinance my home, I am with USDA and need to change mortage com. I am on disability now and retired. Also divorced since i bougjt the house in 2006. Need cheaper interst rates and payment

Angela Jean Brown

I really need help with getting a loan so I can go ahead and make a solid decision on what I wanna do with the next phase of my life I believe is going to be something great I’ll get to do my dream job love being a marketer and a Baylor test along with surveys and sweepstakes entries and I also want to get into children baby children clothing along with dogs cats birds fish costumes

Olivia Smith

How do I get started on doing and getting paid for doing the survey

John Paxson

I need to obtain a credit card but I keep being turned down for delinquent student loan I cosigned for my son. I owe 13k. What did you suggest?

Monica R.

Good to review these,it’s been quite some time ago that I learned them. Thank you.

Petr Balabanov

I would like to the processing of payment of 30-years mortgage by rent-to-own. Is it possible if I have poor credit history, and then I have 78 years old, but healthy healthy, may be me living around 100 ?