Fixed Rate Mortgage

Many couples buying a home are face with the question of whether to opt for a 15 or 30 year fixed mortgage rate. Paying the mortgage off early is important for many people that buy a home later in life. Take some time to think about everything carefully before any agreement is signed. One important point is to ensure that the interest rate doesn't change during the life of the loan.

Avoid the mortgage loans offered by some lenders, those that sound unbelievable because they usually are. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. The greatest benefit with this type of agreement is that there are no sudden unexpected amounts to pay. My wife and I had already decided to research long term fixed mortgage rates when we started looking at homes for sale.

Even though it was important for us to pay off our loan at the earliest possible opportunity, we didn't want high, unrealistic monthly payments which we would have trouble maintaining. This meant we had to consider 30 year fixed rate mortgage plans as well as those of 15 years. Still, having a mortgage close to retirement wasn't what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. It wasn't easy for us because of the stress to pay the house off early.

Taking everything into account we finally went for the easier 30 year mortgage plan instead. There were many things that factored into this decision. Discovering my wife was having a baby was the most important reason. My wife's contribution to the monthly finances would be unreliable since she intended to raise our child at home. Unfortunately, a higher monthly payment was the downside for loans with a 15 year fixed mortgage rate. We just simply didn't want to get in over our heads with a higher monthly payment. The monthly payments on a 30 year loan were quite a bit lower.

We are also able to make extra payments throughout the year to make the principal shrink quicker. Those few extra payments also help reduce the number of years you have to pay the loan over. This may be difficult but well worth the effort in the a few years down the line. It was hard going against our preference for a shorter term, 15 year fixed rate mortgage, but we had to think about more immediate needs and abilities. Despite all our worries, things turned out well for us and we do not regret the decision. As it is, things worked out very well for us by taking this route.

apply now