A 30 year fixed mortgage is the classic stable mortgage.
It has the advantage of an interest rate that never changes.
This type of loan is great when a borrower has locked in their loan at a low rate. It protects the borrower from interest rate increases over time.
The problem with this loan type is that the interest rate is usually the highest on it at any given time in comparison to other loans.
Many people expect to live in their homes for less than 30 years, so they know that a 30 year fixed loan gives them a level of protection they may not need.
New Loan Options
A 30 year fixed mortgage with a 10 year interest only option has the advantages of a fixed loan and an interest-only payment loan combined.
If you pay at the interest only level for the first 10 years than the size of your mortgage loan will remain the same. An interest only payment does not pay down the loan.
Is This Loan Right For You?
This loan is right for you if you plan on keeping a property for a long time. If you are going to move from your property in a year, then you can get a loan that is fixed for a shorter fixed time frame.
A loan with a shorter fixed time frame typically has a lower rate. A shorter time frame in a property means you do not needlessly need to have the loan fixed for very long.