Considering whether you need a 30 or 15 year fixed mortgage rate is important for people looking to buy a home and concerned about their monthly payments. No-one wants a mortgage hanging around their neck forever but with home buyers entering the market later, an early repayment of this loan is important. In a situation as important as this time needs to be spent considering all the available options. For almost every homeowner, having constant interest rate is critical if they are to meet payments without difficulty.

It is always wise to avoid agreements that do not appear to have any negative aspects because they invariably have but are hidden. Interest rates remain the same throughout the life of the loan for 15 year fixed rate mortgages. If you are someone that wants a loan with a regular fixed repayment and no additional charges then this is the main benefit with this type of agreement. Both my wife and I decided to research fixed rate mortgages 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 did not want high, unrealistic monthly payments which we would have trouble maintaining. When we considered fixed rate mortgages we also looked into even longer term loans that spanned 30 years as well. Because we did not want to have a mortgage close to retirement, we hoped we would be able to afford a shorter 15 year fixed rate mortgage. Too much pressure was placed on the early repayment of the mortgage loan.

We thought about it long and hard and despite the pressure we decided to go with the 30 year loan plan. There were many things that lead us into making this choice. It was easier reaching this conclusion when I learnt my wife was expecting a baby. As she intended to raise our child at home we could not rely on her financial income to the monthly expenditure. The problem we could see was the increased financial commitment on a monthly basis if we had opted for the 15 year fixed mortgage rate. For us it just was not feasible as we would just be in over our heads. We found that the monthly repayments on a 30 year loan were more manageable.

We found that if we could make a few extra payments throughout each year then it would gradually reduce the principle sum owed. By doing this you can also reduce the term of the mortgage by quite a few years. In the long term, this is a strategy well worth pursuing if you are able. We would have much preferred to have taken out a loan with a 15 year fixed mortgage rate but we had to consider our other commitments as well. All things considered, it all worked out for the best in the end.

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