Many people who are looking to buy a home consider whether a 30 year or 15 year fixed mortgage rate is best for their monthly payments. Paying the mortgage off early is important for many people that buy a home later in life. However, before you rush in and sign any papers, there are points to contemplate. Probably the most important point is a guarantee of a constant interest rate for the duration of the loan.

It is not uncommon to see lenders offering deals that are too good to be true. 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. When my wife and I were looking at homes for sale we decided to check out the various loans available with 15 year fixed mortgage rates.

Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. This meant we had to consider 30 year fixed rate mortgage plans as well as those of 15 years. 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. Too much pressure was placed on the early repayment of the mortgage loan.

Eventually we decided on a 30 year loan after looking at all the other possibilities. Reaching the decision we did was the only one that made sense. Discovering my wife was having a baby was the most important reason. As she intended to raise our child at home we could not rely on her financial income to the monthly expenditure. The downside to the 15 year fixed mortgage rate was the higher monthly repayment. We knew that it just was not an option and the risk was too great. The 30 year loan repayments were considerably lower than the 15 year figures.

During the year we can make additional payments which helps to reduce the amount owed. Those few extra payments also help reduce the number of years you have to pay the loan over. This takes some discipline but it is well worth the effort it in the long term. Although we would have much preferred a loan with a 15 year fixed mortgage rate we had to take our needs and abilities into consideration. In retrospect, everything worked out ok for us by going down this road.

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