Who Are 30 Year Fixed Loans Best For?
A 30 year fixed loan is best for those that want to lower their monthly payments with an interest rate that never changes over the life of the loan.
What You’ll Need To Qualify
- A Minimum 3% Down Payment
- A Minimum FICO Score of 620
- A Debt-to-income ratio (DTI) no more than 50%.
- Money to cover closing costs, which are about 2-6% of the properties purchase price
Mortgage Insurance Requirements
You will be required to pay mortgage insurance (PMI) if your down payment is less than 20%.
- This typically costs between 0.5 and 1% of your loan amount each year
- Once you reach 20% equity, you can request to cancel (PMI)
- (PMI) is usually canceled automatically once you reach 22% equity in your home.