The 30-Year fixed rate mortgage is still the most common mortgage in use today. It offers the lowest monthly payments of any of the common fixed-rate loans, and is therefore more affordable for many prospective homeowners. This mortgage loan is most appropriate for borrowers that plan to remain in the home for many years and wish to keep housing expenses consistent.

Advantages

• Lower monthly payment
• Most affordable
• More cash/savings because payment is lower; easier to bear if the homeowner has repairs to make or comes upon hard times; extra cash allows homeowner to make other investments since cash isn't tied up in the mortgage

Disadvantages

• Longer term
• Pay more interest
• Costs more than shorter term mortgages over the life of the loan