Still King: 30FRM Remains the People’s Choice – Notes from Tracy Shaw at Prestige
Over the last four weeks, the average 30-year fixed-rate mortgage rate has ticked upward, hovering in the mid-to-upper 6% range. This gradual increase has been fueled by rising U.S. Treasury yields, sticky inflation, and global energy shocks.
Even so – historically – the 30-year FRM has remained the most popular loan choice for both home buyers and refinancers for more than 50 years.
Why It’s the Mainstay
There are several key reasons why the 30-year fixed is still the top choice for most Americans.
- Predictable Payments: Rest assured, your interest rate stays the same for the entire life of the loan. This stability helps to plan your monthly budget.
- Lower Monthly Costs: Spreading repayment of the loan over 30 years results in a lower monthly financial commitment. This smaller payment may make it easier to qualify for the loan, by keeping your monthly housing costs at or below 28% of your gross income.
- Hedge Against Inflation: Your mortgage payment stays the same when the cost of living goes up. Likewise, if your income increases, your monthly housing cost stays locked in while you build equity.
No matter what your mortgage goals are, it all starts with a plan. My team and I walk our clients through all their options, with a focus on each client’s unique scenario and specific needs. Give me a call if you – or your friends and family – need a mortgage professional that goes the extra mile!
President & Chief Lending Advisor
NMLS # 913749 | CalBRE # 01894272
Direct Line: 626.758.0588
Prestige Capital Inc.
NMLS # 2588930
41 E Live Oak Ave, Arcadia 91006
Helping clients achieve home ownership with expert lending solutions and personalized guidance.
