30-Year Fixed Loan

A 30-year fixed-rate loan is a favorite when it comes to home financing. Especially right now, it’s a superb way to lock in a low interest rate, generally between four and six percent, and relatively low and stable monthly payments. Those payments, covering principal and interest, remain the same over the life of the loan. Necessary adjustments are made only to the optional escrow account, which pays for homeowners insurance and property taxes. These expenses can be paid separately. The 30-year fixed-rate mortgage does have slightly higher interest rates than shorter-term loans, must be refinanced to take advantage of declining interest rates, and prevents homeowners from building substantial equity during the early years of the loan since their payments are initially allocated more towards interest. However, those interest payments can result in substantial write-offs on yearly tax returns.

Benefits of a 30-Year Fixed‐Rate Loan:

  • Relatively low and stable monthly payments
  • The potential to lock in a low interest rate for 30 years

Example Loan Scenario:

  • Loan Amount $223,373**
  • Loan to Value from 75.01% - 80%
  • Interest Rate 3.637% and Annual Percentage Rate 3.705%
  • Loan Term 30 years
**Loan scenario based on owner occupied, conventional loan for borrowers with FICO scores 720-739 and Debt to Income of 40.01% - 43%. Interest rates are for illustrative purposes only.

What You Need:

  • Your driver’s license
  • Your social security card
  • Payment stubs for the past month
  • Contact information for your landlord
  • Copies of your past two tax returns if you are employed
  • Copies of your past three tax returns if you are self employed
  • An accounting of regular monthly bills, including account numbers
  • A profit and loss statement for the current year if you run a business
  • Three months of statements for all of your savings and investment accounts
Additional documentation may be requested.