When considering their monthly repayments, many people considering buying a home look into 30 year or 15 year fixed mortgage rates. A large number of people nowadays have decided to wait and are buying homes later but they also want to pay off their mortgage early. But, before you commit yourself and sign any documents, there are points you should consider.

Over the course of the loan, it’s important to remember to make sure the interest rate doesn’t change. It is always wise to avoid agreements that appear to too good to be true because they invariably are. Loans that have 15 year fixed mortgage rates maintain the same amount of interest throughout the life of the loan. If you are someone that wants a loan with a regular fixed repayment and no surprises then this is the main benefit with this type of agreement. Both my husband 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 didn’t want high, unrealistic monthly payments which we would have trouble maintaining. It became obvious that we had to look at fixed rate mortgages over a longer period and not just 15 year fixed rate plans.

Current Mortgage Interest Rates Comparison...

Still, having a mortgage close to retirement wasn’t what we were looking for, so we hoped we would be able to get a loan with a 15 year fixed mortgage. There was obviously very good reasons to finish paying the loan off early. However, after taking everything into consideration we chose a 30 year loan instead.

Discovering I was having a baby was the clincher, although this wasn’t the only reason we reached this decision. My contribution to the monthly finances was unreliable since I was going to raise our child at home. The downside to the 15 year fixed mortgage rate was the higher monthly repayment. We could see the financial problem of getting in too deep. The monthly payments on a 30 year loan were quite a bit lower.

Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. My making just a few of these payments each year we discovered that year’s could be taken off the mortgage term. In the long term, this is a strategy well worth pursuing. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan.

Things worked out well anyway.

Current Mortgage Interest Rates Comparison

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