There is always a debate when home buyers have to decide on the merits of 15 or 30 year fixed mortgage rates. Buying a home later in life means that many people want to have the mortgage paid off early. It may take some time to reach a decision as there are many things to contemplate. It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage.

It is always wise to avoid agreements that do not appear to have any negative aspects because they invariably have but are hidden. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. There are no hidden costs involved with this type of plan which is great for many people that want a regular monthly payment. When we were looking to buy a home, my wife and I decided to go for a loan with a 15 year fixed mortgage rate.

Our aim was to pay of the mortgage as soon as we could without getting into trouble with high monthly payments. Considering longer term fixed rate mortgages was one option if we could not afford a 15 year plan. The problem was that we were not very happy about having a mortgage close to when we both retired so it was our hope a 15 year fixed mortgage rate would still be available to us. We felt that there was a great deal of emphasis on paying the mortgage off early.

After taking everything into consideration we decided on a 30 year loan instead. Reaching the decision we did was the only one that made sense. The main reason was that I found out my wife was pregnant. As she intended to raise our child at home we could not rely on her financial income to the monthly expenditure. Unfortunately, a higher monthly payment was the downside for loans with a 15 year fixed mortgage rate. We just simply did not want to get in over our heads with a higher monthly payment. We found that the monthly repayments on a 30 year loan were more manageable.

If we have spare cash throughout the year then we can use it to reduce the capital sum. By doing this you can also reduce the term of the mortgage by quite a few years. Although this is not easy to achieve, in the long term it is well worth it. 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. Things worked out well anyway, even though we were unsure about it to start with.

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