The 30-year fixed-rate home loan has been the most popular choice for borrowers for many years. In fact, when 15-year rates fell to an historic 2.5 percent last year, the 30-year term still accounted for 85 percent of all home-purchase loans. During the first half of this year, nearly 90 percent of homebuyers chose it. According to Freddie Mac’s chief economist, Frank Nothaft, there are three reasons for the continued popularity of 30-year fixed-rate mortgages. First among those is the fact that it is more affordable. Because the term is longer, the monthly payment is lower than it would be on a shorter-term mortgage. They are also more stable because the rate is locked in and not subject to the ups and downs of the market. Finally, Nothaft says flexibility is a feature of 30-year loans that makes them popular with buyers and borrowers. In short, 30-year loans continue to be the most popular mortgage product for American homebuyers because they are the most affordable and manageable, helping middle-class and first-time buyers enjoy the benefits of homeownership. More here.