Best 30-Year Mortgage Lenders of 2019

Top10.com StaffByTop10.com StaffOct. 24, 2019
30-Year Fixed Rate Mortgage
Shopping for a mortgage is a big deal, and if you’re buying your first house, you may not know where to start with all of the different lenders, loan types and terms available. One of the most popular home purchase loans is the 30-year fixed mortgage, which allows you to pay back your loan over the course of 30 years at a stable interest rate.

There are different types of 30-year fixed mortgages, including conforming mortgages, government-backed, and jumbo loans, but the main idea is that since the loan term is long, you pay much less each month than you would if you took out a 15-year mortgage.

Compare the Top 5 Lenders for 30-Year Mortgages

Lender
Required Credit Score
Best Feature
Visit Site

Varies per lender

Up to 5 free quotes

No minimum

Lends up to $3 million

3. Better.com

620+

No fees, no commissions

View Rates

No minimum

Down payments as low as 3%

No minimum

FHA, VA, HARP and USDA loans available

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
 

30-Year Mortgage Rate Fluctuation

Interest rates fluctuate daily, so your quotes might change from day to day and certainly will from year to year. Usually, fluctuation is minimal, but when dealing with hundreds of thousands of dollars, even .01% can be significant. 

Besides daily fluctuation, your rate will also depend on the type of loan you take. In the table below, you can see the rates as of April 30, 2019 for different types of 30-year mortgages. Other factors that affect your rates are your credit score, cost of the house, and your down payment.

Loan
Rate
1-Week Interest Rate Change
1-Week APR Change

Conventional 30-Year Fixed Rate

4.625%

-.05% to .05%

-.05% to .05%

30-Year Fixed Rate FHA

4.5%

-.05% to .07%

-.05% to .07%

30-Year Fixed Rate VA 

4.625%

-.05% to .07%

-.05% to .07%

30 Year Fixed Rate Jumbo

4.750%

-.03% to .06%

-.03% to -.06%


Best Lenders for 30-Year Mortgages

1. LendingTree

Minimum down payment: 5% (with PMI), 20% (without PMI)

LendingTree is not an actual lender but rather a marketplace where you can search for loans based on your parameters. LendingTree works with a network of 350 partners, making it a good option for people who want to shop around and compare rates. When you use LendingTree to search for mortgages, there’s no commitment and it doesn’t affect your credit score.

  • One application for many lenders
  • Will retrieve your credit score for you
  • Check your credit and calculate your payments

Best for: Borrowers looking to compare rates and options quickly

Standout feature: Up to 5 free quotes

LendingTree LendingTree View Rates

2. Quicken Loans

Minimum down payment: 5%

Quicken Loans offers a quick application process and fast pre-approval for potential borrowers. Rates are updated daily, and there are a lot of loan options available. If you’re looking for a jumbo 30-year mortgage loan, Quicken can lend up to $3 million to qualified customers.

  • Online home buyers guide
  • Email and text rate updates
  • Fast online application

Best for: Tech-friendly borrowers

Standout feature:  Low rates and online customer service

Quicken Loans Quicken Loans View Rates

3. Better

Minimum down payment: Varies per customer

If you’re looking for a 30-year mortgage, there are few options out there that can match the ease and convenience of Better.com.

The company is an all-digital platform that looks at your goals and means in order to develop a personalized loan for you. And all of the rates offered by Better are backed up by the Better Price Guarantee, which promises that the company will beat any competing price, and even beat it by $1,000. 

 There are no origination or lender fees and no commission. That said, there are prepayment penalties. Better allows you to lock in your rate and connects you with a single loan officer once you've finished the pre-approval process. 

  • No origination or lender fees 

  • Many different fixed and variable rate loans 

  • Fast approval process

Best for: Simple, online mortgage

Standout feature: Instant loan estimates

View Rates

4. Rocket Mortgage

Minimum down payment: 5%

Rocket Mortgage, a subsidiary of Quicken Loans, offers a variety of loan options for people in different financial situations. There are many loan types, including conforming and government-backed loans. In some cases, down payments can start as low as 3%. The whole loan process is completed online, and the platform is smooth and seamless.

  • Entirely online process
  • Impressive customer support
  • Speedy application process

Best for: Borrowers who want a live chat option

Standout feature:  Mobile application

Rocket Mortgage Rocket Mortgage View Rates

5. Freedom Mortgage

Minimum down payment: 20% (without PMI)

Applying for a 30-year mortgage through Freedom Mortgage is straightforward and simple; you can do it online or over the phone. Freedom Mortgage offers many types of loans, including federal-backed loans like FHA, VA, HARP, and USDA. Some loan down payments are as low as 3.5% for government backed loans, making it a good option for people who don’t have a large sum to put down but would still like to purchase a home.

  • 630+ credit scores accepted
  • Low mortgage rates
  • Minimum down payment 3.5% for government backed loans

Best for: Borrowers looking for an automated application and loan processing

Standout feature:  Excellent customer service

Freedom Mortgage Freedom Mortgage View Rates

When Is a 30-Year Mortgage Best for You?

If you’re debating as to whether a 30-year mortgage or 15-year mortgage is best for you, here are some things to consider:

  • Monthly payment amount: Monthly payments for 30-year mortgages are significantly lower than those of 15-year mortgages—would you be able to afford a higher monthly payment? If not, a 30-year mortgage is better for you.
  • Cost of your house: A 30-year mortgage usually makes it more financially feasible to buy a more expensive house, since the payment is spread out over such a long time period. To pay off a very expensive house ($400,000) with a 15-year mortgage means you need to be earning a high yearly income.
  • Interest rates: 15-year mortgages come with lower interest rates, which means you can save money in the long run. However, you have to go back to the first bullet and ask yourself, even if I’d like to save money through a lower interest rate, can I actually afford higher monthly payments?
  • Your income: Will you have a steady income until you retire? If yes, a 15-year loan is a good option. However, if you’re not sure whether your income will remain steady, a 30-year loan might be a better option, since the monthly payments are smaller and you have a better chance at paying them even if you’re in between jobs.

How to Apply for a 30-Year Mortgage?

When applying for a 30-year mortgage from any of the above companies, you’ll find that though the process can seem nerve-wracking, it’s actually pretty straightforward. If you’re serious about getting a mortgage, most of these sites offer quotes and possible pre-qualification in a matter of minutes, so all you need to be prepared to do is enter the following information:

  • Name, date of birth
  • Address, phone number, email address
  • Location of house you want to buy, cost, how much down payment you can put down
  • Credit score

Once you pre-qualify, you’ll then be asked to submit or upload further documents:

  • Proof of income
  • Proof of assets
  • Cosigner if necessary
  • Disclosure of debts
  • Various tax paperwork

While some applications can be completed online, you can always speak to a loan officer from the online lender for help and guidance.

Bottom Line

30-year mortgages are the most popular type of home loan in the United States, and for good reason. These mortgages can be paid back over the course of 30 years and they make home purchase possible for people who aren’t earning 6 digits. Because the loan term is quite long, you’ll have a significantly lower monthly payment than you would have with a 15-year loan. The downside is that interest rates and APR are typically higher than 15-year loans, but many people are willing to take it on because they can’t afford huge monthly payments. 

Top10.com StaffByTop10.com StaffJun. 18, 2019
Our editorial staff is comprised of writers who are knowledgeable about financial services. We specialize in simplifying the process of choosing the right mortgage lender for your needs.