Other pros of 30-year fixed-rate mortgages include:
- Monthly payments are the same, which makes budgeting easier.
- The monthly payment is typically less compared to other mortgage loans.
- It’s an ideal loan choice for home buyers who intend to stay in their home for 10 years or longer.
- FHA 30-year fixed-rate mortgages could only require a 3% down payment
- You may require private mortgage insurance.
- You could pay more interest over the life of the loan, compared to a shorter fixed-rate-term loan.
- The total costs of borrowing can be more if you only keep your home for 10 years or less.
- It can take longer to build equity in the home, depending on the amount of your down payment.