25-Year Fixed Mortgage
Secure a fixed rate and rest easy with a 25-year mortgage.
Take the first step toward buying a house.
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25-Year-Fixed Mortgage Rates
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Disclaimer
Rates shown reflect current products available with Rocket Mortgage, a provider on our network.
Assumptions
More About 25-Year Fixed Mortgages
Who Are 25-Year Fixed Mortgages Best For?
If you want the security of a fixed interest rate and the budget flexibility that comes with lower monthly payments, a 25-year fixed mortgage could be a great option for you.
Looking to refinance? A 25-year fixed mortgage is also a great refinancing option as well.
How Do 25-Year Fixed Mortgages Work?
A 25-year mortgage is a term you might not typically see. With a 25-year fixed, you'll pay off your home loan over 25 years instead of the standard 15 or 30 years.
Since it's a fixed mortgage, you can count on the same principal and interest rate for the life of the loan.
How Do I Qualify For A 25-Year Fixed Mortgage?
- General minimum 3% - 3.5% down payment
- A qualifying FICO® Score of 580 or higher.
- Debt-to-income ratio (DTI) required varies based on your loan option, but generally it's best to have a DTI of no more than 45%.
- 3% - 6% of the purchase price to cover closing costs
- You'll pay monthly mortgage insurance premiums if you have an FHA loan. If the loan is conventional, you’ll generally pay for private mortgage insurance if your down payment or equity amount is less than 20%.
25-Year Fixed Mortgage Benefits
- Your interest rate will remain the same for the entire life of your loan.
- You may be able to secure a lower interest rate than with a 30-year fixed mortgage.
- If you’re using the loan to purchase your primary residence, you can put as little as 3% down.
- You’ll pay off your mortgage 5 years faster than with a 30-year mortgage.
- Paying off your mortgage early won’t result in prepayment penalties.
25-Year Mortgage Insurance Requirements
Putting less than 20% down on your conventional 25-year fixed loan will mean you’ll need to pay primary mortgage insurance (PMI).
- PMI generally adds 0.5% - 1% to the cost of your mortgage each year.
- PMI costs get divided into monthly payments.
- You can request to have your PMI canceled on a conventional loan after you achieve 20% equity in your home, but it will typically be canceled automatically when you reach 22%.
If you’re getting an FHA loan, you’ll pay an upfront mortgage insurance premium of 1.75%. If you have a down payment of 10% or more, you’ll pay mortgage insurance premiums monthly for 11 years. Otherwise, you pay them for the life of the loan.
