FHA & VA Loans
Rates, terms, and fees as of December 3, 2019 9:17 pm and subject to change without notice. Select a product to view important disclosures, payments, assumptions, and APR information. Please note we offer additional home loan options not displayed here.
30-Year Mortgage Rates
30-year rates are tied to mortgage backed securities (MBS) which are a type of 30-year bond and provide a safe haven for investors when the stock market is volatile. When investors purchase these bonds, they are essentially creating the funds needed to lend money to homebuyers.
What are 30-year fixed-rate mortgages?
30-year mortgage rates change daily and are based on market conditions such as stock market and bond market. They are typically .25% to .5% higher than 15-year fixed rate mortgage or adjustable rate mortgages.
Who should consider a 30-year fixed-rate mortgage?
Home buyers that plan on living in their home long-term should always consider a 30 year fixed mortgage as this will insure that their PI monthly payment stays the same for the life of the mortgage.
Top 30 Year Mortgage Questions
What are the credit score requirements for 30-year mortgages?
Borrowers applying for a 30 year fixed conventional mortgage will need a minimum of 620 middle credit score.
What is the maximum debt-to-income ratio for 30-year mortgages?
The maximum debe to income ratio (DTI) for a 30 year mortgage will vary based on credit score and amount of reserve the homebuyer has available. The standard DTI is 45% of gross monthly income. However with excellent credit score and high reserves the borrower may be able to qualify for as high as 55% debt to income ratio.
What is the minimum downpayment for 30-year mortgages?
For primary home purchase on a conventional 30 year mortgages, the homebuyer will need a minimum of 3% down-payment if they are a first time homebuyer or 5% down payment if they are not a first time homebuyer. If they plan on buying as a vacation home they will need 10% down-payment and if they are buying a home as a rental then they will need a minimum of 20% down payment.
What if I have some derogatory events on my credit report?
Most everyone has a had a few dings on their credit at some point. To qualify for a 30-year fixed-rate mortgage, you must meet the following requirements:
- No bankruptcies in the last 4 years
- No short sales in the last 4 years
- No foreclosures in the last 7 years (4 years if it was included in bankruptcy)
Mortgage Rate Straight Talk
Don’t make this mistake that mortgage rate shoppers make every day. It could cost you thousands.