For many home buyers, the only real decision they have to make is whether to have a 15 or 30 year fixed mortgage rate? With the number of people buying a home when they are older, on the increase, clearing the mortgage debt early is important. Decisions of this nature need careful consideration before any commitment is made. Home buyers looking into this need to be assured their monthly payments will not increase.

Avoid the mortgage loans offered by some lenders, those that sound unbelievable because they usually are. The interest rate should remain the same for fixed rate mortgages until the loan is repaid. This is always a good thing for those people that do not like surprises. 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. It became obvious that we had to look at fixed rate mortgages over a longer period and not just 15 year plans. The 15 year fixed mortgage rate was the plan we really wanted because neither of us wanted to be still paying a mortgage when we close to retiring. We were worried about the emphasis placed on early completion of the mortgage.

Eventually we decided on a 30 year loan after looking at all the other possibilities. Although a number of things had to be pondered over, eventually the choice was made for us. It was easier reaching this conclusion when I learnt my wife was expecting a baby. Because she wanted to be at home for our child, her income would not only be uncertain but also irregular. 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. We just decided we would probably get into trouble if we took this route. The monthly payments on a 30 year loan were quite a bit lower.

Making a few additional lump sum payments during the year helps bring down the amount owed. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. 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. Things worked out well anyway, even though we were unsure about it to start with.

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