There are 360 monthly payments with a 30-year fixed-rate mortgage and your interest rate/payment stays the same. It is therefore understandable that it is the most popular mortgage program for both refinances and purchases. The benefits of a 30-year fixed mortgage rate is the flexibility it allows the homeowner in case something comes up.
Knowing your payment amount enables the homeowner to budget accordingly. The homeowner can also be better prepared for unexpected expenses.
The qualifications for a 30-year fixed-rate mortgage are fairly basic. Your Debt-To-Income ratio should be below 45% and at least 3% down (or 3% equity).
You’ll need to be employed, retired or if you are self-employed, you’ll need at least two years of tax returns to show self-employment income.
Since your payment is lower on a 30-year fixed-rate mortgage it’s easier to qualify for this loan versus a 15 year loan.