For a property at 456 Somewhere Avenue, which type of loan is the borrower applying for?

The scenario presented outlines a 30-year, fixed-rate, conventional loan as the correct option for the borrower at 456 Somewhere Avenue. This type of loan is defined by its stable interest rate that does not change over the life of the loan, which provides predictability in monthly payments. A 30-year term allows the borrower to spread repayments over a longer period, resulting in smaller monthly payments compared to shorter terms, which can be beneficial for budgeting.

Conventional loans are not insured or guaranteed by the government, which is important to note as they generally have stricter credit score requirements and down payment thresholds but offer more flexibility in terms of property types compared to government-backed loans like FHA (Federal Housing Administration) or VA (Veterans Affairs) loans.

In this instance, the choice of a fixed-rate mortgage is particularly advantageous as it protects the borrower against potential interest rate increases over time, making long-term financial planning much easier. Thus, a 30-year, fixed-rate, conventional loan aligns well with the common needs of homeowners seeking stability and affordability in their mortgage payments.