There is always a debate when home buyers have to decide on the merits of 15 or 30 year fixed mortgage rates. Many of us are buying homes later in life these days so it is not unreasonable to have the house paid off early. It may take some time to reach a decision as there are many things to contemplate. Ensuring the repayment remains the same throughout the mortgage term is very important.

Steer clear of lenders that are offering unbelievable deals because they probably are. The interest rate should remain the same for fixed rate mortgages until the loan is repaid. For those individuals that do not like hidden surprises, this is always a benefit. 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.

Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. It became obvious that we had to look at fixed rate mortgages over a longer period and not just 15 year plans. Still, having a mortgage close to retirement was not what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. There was a lot of pressure to have the house paid off as soon as possible.

After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan. There were many things that lead us into making this choice. Probably the over-riding decider was the fact my wife was expecting a child. Because she wanted to be at home for our child, her income would not only be uncertain but also irregular. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. For us it just was not feasible as we would just be in over our heads. After looking at the much lower amount we would be paying per month with a 30 year mortgage loan, there was not any option but to go with it.

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. This may be difficult but well worth the effort in the a few years down the line. 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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