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30-year fixed mortgage30-year fixed mortgages
A 30-year fixed-rate mortgage is the most common purchase loan in the country. Your rate and principal & interest payment stay the same for 360 months, giving you the lowest required payment of any fixed term and room in your budget for everything else.
NMLS #1660690 · Reviewed by UMortgage+
What it is and who it fits
- A fixed-rate loan repaid in 360 monthly payments, available on conventional, FHA, VA, USDA, and jumbo programs
- First-time buyers maximizing their budget
- Buyers who value a predictable, lower payment and cash-flow flexibility
- Refinance clients lowering their payment or consolidating debt
Who should look elsewhere
- Borrowers who can comfortably afford a 15-year and want the lowest total interest
- Buyers expecting to sell or refinance within a few years who may benefit from an ARM
Pros and cons
Pros
- Lowest required fixed payment
- Helps you qualify for more home
- Predictable payment for the life of the loan
- Prepay any time to shorten the payoff (check for prepayment terms)
Cons
- Usually a higher rate than a 15-year
- Slower equity build in early years
- Much more total interest if kept to term
15-year vs. 30-year fixed
| Feature | 15-year fixed | 30-year fixed |
|---|---|---|
| Monthly payment | Higher | Lower |
| Typical rate | Usually lower | Usually higher |
| Equity build | Fast: more principal from month one | Slower early on |
| Total interest | Much less over the life of the loan | Much more if kept to term |
| Budget flexibility | Less room for other goals | More room; extra payments optional |
| Qualifying | Higher payment can raise DTI | Lower payment helps qualify for more home |
General comparison for education. Pricing differences between terms vary by market and scenario.
Example: $400,000 loan, 15-year vs. 30-year
| Sample | 15-year fixed | 30-year fixed |
|---|---|---|
| Loan amount | $400,000 | $400,000 |
| Sample note rate (placeholder) | 5.875% | 6.5% |
| Principal & interest / month | $3,348 | $2,528 |
| Total interest over full term | $202,725 | $510,178 |
In this sample, the 15-year payment is about $820 more per month, but total interest is roughly $307,453 less if each loan is kept to term. Payments exclude taxes, insurance, HOA, and mortgage insurance.
Run your own numbers in the payment calculator.
Rates shown are placeholders for illustration only, not today's rates. Not a rate quote, APR disclosure, or commitment to lend. Actual rates, points, and payments depend on credit, occupancy, property, lock period, and market conditions on the day you lock. Ask a loan officer for a personalized Loan Estimate.
Why most first-time buyers choose a 30-year
The lower required payment helps first-time buyers qualify for more home, keep cash reserves, and handle the costs of a new home. You can still prepay principal any month you want. See the first-time buyer guide for down payment options and next steps, or start on the purchase hub.
Frequently asked questions
Why is the 30-year fixed the most popular mortgage?
It offers the lowest required fixed payment, which makes homes more affordable month to month and helps buyers qualify. The payment never changes, so budgeting is simple.
Is a 30-year or 15-year mortgage better?
A 30-year gives you a lower payment and more flexibility; a 15-year usually has a lower rate and saves a lot of interest but costs more each month. The right choice depends on your budget, goals, and how long you plan to stay.
Can I pay off a 30-year mortgage early?
Usually, yes. Extra principal payments shorten the loan and reduce total interest. Most conventional and government loans have no prepayment penalty, but confirm your loan terms.
Is a 30-year fixed good for first-time buyers?
For many, yes. The lower payment leaves room for reserves, furniture, and repairs, and pairs with low-down-payment programs like FHA, VA, USDA, and 3% down conventional.
Can I refinance a 30-year fixed later?
Yes. If rates drop or your goals change, you can refinance into a new 30-year, a shorter term, or a cash-out loan, subject to qualifying and closing costs.
Educational content only. Guidelines change. Confirm details with UMortgage+ powered by NEXA Lending, LLC, before you apply.
See your 30-year fixed options
Get a personalized quote from a loan officer or call (480) 233-7897.