True to its name, a 30-year fixed spreads out repayment over 30 years, with an interest rate that remains the same for the life of the loan."The 30-year fixed-rate mortgage is a uniquely American construct," said Greg McBride, chief financial analyst for Bankrate.
The 30-year fixed is able to exist in the U.S. due to the country's deep financial markets, experts say. Mortgage-backed securities are attractive to investors in the U.S. and across the globe because their government sponsorship makes them safe investments over long periods of time and they provide a fixed payout, said Daryl Fairweather, chief economist at Redfin, a real estate brokerage site.