Question:

What are FHA 30 year fixed-rate mortgage advantages?

Answer:

With the FHA 30 year fixed-rate mortgage you choose a classic mortgage payment plan with lower rates and a low monthly installment compared to shorter term fixed-rate mortgages.

Usually, knowing in advance that you are going to stay in this home for a long time, will make you go for the FHA 30 year FRM, as the low payments will allow you to save and invest money in another venture. Also, knowing that you have locked low rates for a long period of time gives you confidence in managing your balances.

You may consider a 40 year FRM to bring you even better rates and lower payments. Interest with long term fixed-rate mortgages is tax-deductible, so even though you are paying a lot in the long run, your taxes will be reduced.

However, nice rates for a 30 year fixed-rate mortgage can be obtained only if you have very good score. That is the reason many people give it a try with an ARM since they cannot qualify under a 30 year fixed.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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