Many homeowners often turn to a 30-year fixed rate mortgage in order to get a lower monthly mortgage payment. Mortgage interest rates on the 30-year mortgage have been quite low over the past two months and many homeowners that have refinanced saw not only a reduction in their interest rate but also a lower monthly mortgage payment.
There are pros and cons to the 30-year fixed rate mortgage and it is dependent upon a homeowner’s personal situation as to if this type of mortgage will be beneficial. Homeowners that have been struggling to make their mortgage payment but may not be able to qualify for a mortgage modification have been using refinancing as a way to make their home more affordable.
Depending on the homeowner’s credit score and the equity they have built in their home, a 30-year fixed rate mortgage can indeed bring a lower monthly mortgage payment along with a lower mortgage rate as well. However, this is not a guarantee and the mortgage payment and mortgage rate a homeowner gets will rely upon their financial situation.
One drawback of the 30-year fixed rate mortgage is that while it does come with a lower monthly mortgage payment, in many cases, this type of mortgage can cost a homeowner much more over the long run. Typically, a 30-year fixed rate mortgage could cost almost double the original amount of the home when interest is factored in.
However, it will come down to a homeowner’s personal decision and financial situation as to what will be in their best interest. Some people don’t mind paying more over the long run of their mortgage as long as they can keep a roof over their head. If you’re struggling to make your mortgage payment it will be beneficial for you to contact your mortgage lender and talk about options that may be able to assist you with your mortgage payment.