With a fixed interest rate throughout the life of the loan, homeowners are protected from potential rate increases in the future, making it easier to budget and plan for the long term.
Additionally, the 30-year fixed-rate mortgage is attractive because it allows borrowers to spread their payments over a longer period, which generally results in lower monthly payments compared to shorter-term loans.
This can make homeownership more accessible for many people. The stability and predictability of this loan type are significant factors contributing to its popularity among both first-time homebuyers and those looking to refinance
What is the lowest down payment for a mortgage?
The lowest down payment for a mortgage can vary depending on the type of loan you’re looking at. Here are some options:
- Conventional Loans: You can get a conventional loan with as little as 3% down. This is a great option if you have decent credit and can afford a small down payment.
- FHA Loans: These loans require a down payment as low as 3.5%. They’re perfect for first-time homebuyers or those with lower credit scores.
- VA Loans: If you’re a veteran or active-duty military member, VA loans offer zero down payment options. This is a fantastic benefit for those who qualify.
- USDA Loans: Designed for rural homebuyers, USDA loans also offer zero down payment options, but you’ll need to meet certain income requirements and buy a home in a USDA-eligible area1.
These options make homeownership more accessible, especially if you don’t have a large amount saved up for a down payment
