The question of which is preferable: the 15 or 30 year fixed mortgage rate is one that home buyers are always unsure about. Buying a home later in life means that many people want to have the mortgage paid off early. However, before you rush in and sign any papers, there are points to contemplate. Ensuring the repayment remains the same throughout the mortgage term is very important.

It is always wise to avoid agreements that do not appear to have any negative aspects because they invariably have but are hidden. A fixed rate mortgage maintains a set interest rate during the period of the loan. 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 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. This meant we had to consider 30 year fixed rate mortgage plans as well as those of 15 years. We did not really like the prospect of having a mortgage as we approached retirement so were really hoping to get one of the loans with 15 year fixed mortgage rates. Too much pressure was placed on the early repayment of the mortgage loan.

After taking everything into consideration we decided on a 30 year loan instead. Reaching the decision we did was the only one that made sense. Probably the over-riding decider was the fact my wife was expecting a child. My wife decided she wanted to raise our child at home so I could not be certain of her monthly financial commitment to our household expenses. The financial commitment per month on the 15 year fixed mortgage rate was just too high. 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.

If we have spare cash throughout the year then we can use it to reduce the capital sum. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. This may be difficult but well worth the effort in the a few years down the line. 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. Despite all our worries, things turned out well for us and we do not regret the decision.

Discover how these REAL PEOPLE purchased a beautiful home without even a credit check! - CLICK HERE!

Technorati Tags: Current Mortgage Interest Rate, Best Mortgage Rate, Delaware Home Equity Loan Rates