The full explanation
It is the most common choice in the United States and the one almost every state assistance program uses. The most common terms are thirty and fifteen years.
An example
Lucía chose a thirty-year fixed-rate mortgage. Even if market rates rise, her principal and interest payment will stay the same until the loan is paid off.
With real numbers
Computed with official data for the whole U.S. In your county the numbers may differ.
- Example loan
- $266,160
- Principal and interest per month
- $1,803
- Interest over 30 years
- $382,942
If you buy a $332,700 home, the typical U.S. value, with 20% down, your loan would be $266,160. Over 30 years at the average fixed rate of November 5, 2026 (7.18%), you would pay $1,803 a month in principal and interest, and $382,942 in interest in total.
Computed with: American Community Survey (ACS) 5-year estimates (2020–2024) · Freddie Mac Primary Mortgage Market Survey (PMMS) (November 5, 2026) · Fannie Mae Selling Guide B7-1-01 — Provision of Mortgage Insurance (October 17, 2026)
You will see it in…
- The Loan Estimate, page 1 (“Can this amount increase after closing? NO”)
- Assistance program requirements (“30-year, fixed rate”)
- Our mortgage calculator, in the loan term
