30-Year Fixed Purchase or Refinance

Key Features:

1. Fixed Interest Rate: The interest rate remains constant throughout the life of the loan, which means your monthly principal and interest payments will not change. This can make budgeting easier and provide peace of mind against rising interest rates.
2. Loan Term: The loan is amortized over 30 years, which means the loan balance is gradually paid off over this period. This longer term typically results in lower monthly payments compared to shorter-term loans, such as 15-year fixed-rate mortgages.
3. Eligibility: Borrowers must meet certain credit score and income requirements to qualify for a 30-year fixed-rate mortgage. For example, the HomeReady 30-Year Fixed product requires a minimum FICO score of 620.
4. Loan Amounts: The maximum loan amount can vary depending on the loan product and the borrower's qualifications. For instance, the Bank Statement 30-Year Fixed Pink product allows for loan amounts up to $3,000,000.
5. Property Types: This mortgage can be used for various property types, including primary residences, second homes, and investment properties. However, some products may have specific restrictions. For example, the Jumbo 30-Year Fixed Pink product is available for primary residences and second homes only, not for investment properties.
6. Temporary Rate Buydowns: Some 30-year fixed-rate mortgage products offer temporary rate buydowns, which can lower the interest rate for the first few years of the loan. For example, the Jumbo 30-Year Fixed Pink product allows for both lender-paid and seller-paid buydowns.

Benefits:

• Predictability: With a fixed interest rate, borrowers can plan their finances with confidence, knowing that their monthly payments will not change.
• Affordability: The longer loan term results in lower monthly payments compared to shorter-term loans, making homeownership more accessible.
• Stability: Fixed-rate mortgages protect borrowers from interest rate fluctuations, providing long-term financial stability.

Considerations:

• Total Interest Paid: While the monthly payments are lower, the total interest paid over the life of a 30-year loan is higher compared to shorter-term loans.
• Qualification Requirements: Borrowers need to meet specific credit and income criteria to qualify for a 30-year fixed-rate mortgage.

Specific Products:

• HomeReady 30-Year Fixed: Requires a minimum FICO score of 620 and allows for a maximum loan-to-value (LTV) ratio of 97% for primary residences.
• Jumbo 30-Year Fixed Pink: Allows for loan amounts up to $5,000,000 with varying LTV ratios based on the loan amount and property type. Temporary rate buydowns are available for primary residences and second homes.
• Bank Statement 30-Year Fixed: Designed for self-employed borrowers, this product allows for loan amounts up to $3,000,000 and requires a minimum FICO score of 620.