30-Year Fixed Mortgage Rates

About 30-year fixed loans

The 30-year fixed is the default American mortgage. The rate never changes, so the principal and interest portion of your payment is identical in year one and year thirty. That predictability is why it dominates the market despite costing more in total interest than any shorter term.

The trade-off is stark: on a $300,000 loan at 6.5%, you pay roughly $383,000 in interest over thirty years — more than the house cost. The lower monthly payment buys cash-flow flexibility, and whether that is worth the interest depends on what else you do with the difference.

Rate versus APR

The interest rate sets your monthly payment. The APR folds in points, lender fees and any mortgage insurance, which makes it the right number for comparing two offers. A lower rate paired with higher fees often costs more over the life of the loan.

Frequently asked questions

Should I pay extra toward a 30-year mortgage?

Extra principal payments shorten the term and cut total interest substantially. Paying one additional payment per year on a 30-year loan typically removes four to six years from the term. Confirm your lender applies extra payments to principal rather than prepaying the next instalment.

Can I refinance later if rates fall?

Yes, and that flexibility is part of the case for a 30-year fixed. Refinancing costs two to five percent of the loan in closing costs, so the rate needs to fall enough to recover that within the time you expect to stay.