skip to Main Content

Benefits of 30-Year Fixed Mortgages for Washington Home Buyers

The 30-year fixed-rate mortgage loan is the most popular financing option among home buyers in Washington State. It’s more widely used than the 15-year fixed, the 5-year adjustable, and all other types of home loans. But why?

This article explains the potential benefits of using a 30-year fixed-rate mortgage when buying a house in Washington State.

What Is a 30-Year Fixed-Rate Mortgage?

This type of mortgage loan has a fixed interest rate and a repayment term of 30 years. It is the most commonly used of all the different home loan types, and we’ll look at the reasons why in a moment.

One of the key features of this product is the fixed interest rate. When you use a 30-year fixed home loan to buy a house in Washington State, it will carry the same mortgage rate for the full 30-year term — or until you sell or refinance.

This is an important distinction, because some types of loans have an interest rate that can change or”adjust” over time. But the 30-year fixed-rate mortgage stays true to its name by remaining unchanged for the full repayment term.

Related: Minimum mortgage requirements in 2017

Benefits for Washington State Home Buyers

The 30-year fixed is the most popular mortgage option among Washington State home buyers, and for several reasons. Here are the primary benefits.

  • Payment stability: Fixed-rate mortgage loans offer the benefits of long-term stability and security. They are designed to protect borrowers from unexpected interest rate changes while they are holding the loan. This makes the 30-year fixed mortgage a good option for Washington State home buyers who prefer payment stability over the long term.
  • Peace of mind: This is an extension of the first benefit. Borrowers who choose the 30-year fixed-rate home loan enjoy the peace of mind that comes from knowing they have a stable, unchanging mortgage loan. In contrast, borrowers who use adjustable-rate mortgages (or ARMs) face more uncertainty because their rates can change over time.
  • Low monthly payment: Another benefit to using a 30-year home loan (compared to one with a shorter repayment term) is that you end up with a smaller monthly mortgage payment. By spreading the payments out over 30 years instead of, say, 15 years, you’ll reduce the size of your monthly payments.
  • Widely available: As mentioned earlier, the 30-year home loan is one of the most popular mortgage options among home buyers in Washington State. They are in high demand. As a result, just about every bank and mortgage company offers them.

Those are the benefits. But there are some drawbacks as well. The downside to using a 30-year loan is that you might pay for that long-term stability in the form of a higher interest rate. On average, the interest rates assigned to 30-year loans tend to be higher than those assigned to shorter-term mortgage loans.

Another potential drawback is that you’ll pay interest for a longer period of time, compared to a 15-year mortgage. So your total interests costs will be higher. Of course, many people who use 30-year fixed-rate loans sell or refinance their homes long before 30 years. So this might not be a major drawback in all scenarios.

Need a loan? Do you have questions about using a 30-year mortgage to buy a house in Washington State? We can help. Sammamish Mortgage has been helping home buyers across the state for more than 20 years. We offer competitive rates on a variety of mortgage products, including the popular 30-year fixed. Please contact us with any questions you have, or to receive a rate quote.

Back To Top