2021 Best Mortgage Lenders Mortgage rate comparison

The Pros and Cons of a 30-Year Fixed Rate Mortgage

Because 30-year fixed rate mortgages come with lower monthly payments, they are the most popular mortgages in the United States. As with all loans, however, there are pros and cons.

Pros	Cons
Lower monthly payment	Higher interest rates
Less monthly budget stress	Takes longer to build equity
Makes expensive property more affordable	Overall more expensive
May qualify for a mortgage interest reduction
Easier to qualify

Common Mistakes Young Homebuyers Make

Becoming a first-time homeowner is exciting, and can also be a bit nerve-wracking. As a young homeowner, avoiding some of the pitfalls of first-time homeowners can help make this major investment that much easier.

Underestimating Yourself

A lot of young people grew up associating home-ownership with their parents, and to some extent they still do. It seems like something you do in your late 30s or in middle-age, when you’ve really built up a sizable nest egg.

Not Understanding the Actual Costs

The sticker price of the house and the monthly mortgage estimates aren’t the only costs of owning a house, and if you don’t factor in all of the expenses, you can easily find yourself getting in over your head.

In addition to the monthly mortgage payment and the closing costs of buying a new house, you also need to factor in homeowner’s insurance, utility bills, and property tax. In addition, you should have some sort of rainy day fund set aside for emergency repairs.

Top 5 Lenders for Young Homebuyers

Required Credit Score	Best Feature	Visit Site
500+	Low fixed mortgage rates from 2.994% APR	View Rates
620+ for most loans	Highest customer satisfaction in the US	View Rates
620+	Technology-based platform	View Rates
620+	Basic mortgage information is available without a signup	View Rates
Varies	Works with nearly any type of property	View Rates