People who want lower monthly payments and an interest rate that never changes over the entire life of the loan. Read more about other benefits below.
You’ll pay off your mortgage in 30 years. Although you’ll pay more interest over the life of the loan compared to a 15-year fixed loan, your monthly payments will be lower.
Because your interest rate is locked for the life of your loan, your principal and interest payments won’t change over the life of your loan. The amount for your taxes and insurance can go up and down.
You may have to pay for mortgage insurance, depending on your down payment amount if you’re buying a home, or how much equity you have if you’re refinancing.
|Conforming 30-Year Fixed||2.75%||2.969%|
You’ll have to pay primary mortgage insurance (PMI) if your down payment is less than 20%.
The payment on a $200,000 30-year Fixed-Rate Loan at 2.75% (2.969% APR) is $816.49 for the cost of 1.75 point(s) due at closing and a loan-to-value (LTV) of 74.91%. One point is equal to one percent of your loan amount. Payment does not include taxes and insurance. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply.