It is quite normal for potential home buyers to look into 30 year or 15 year fixed mortgage rates when considering their monthly repayments. 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 consider.

It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage. Avoid the mortgage loans offered by some lenders, the one that sound unbelievable because they usually are. The interest rate remains the same for fixed rate mortgages over 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. In addition to considering loans with 15 year fixed mortgage rates we also looked into loans that spanned 30 years as well.

Mortgage Interest Rate Refinance...

No-one likes the idea of having a mortgage when they are close to retirement, and we were no different, so it was still our hope that a 15 year fixed mortgage rate plan would still be an option. We were worried about the emphasis placed on early completion of the mortgage. We thought about it long and hard and Despite the pressure we decided to go with the 30 year loan plan.

Discovering I was having a baby was the clincher, although this wasn’t the only reason we reached this decision. I was going to raise our child from home so my contribution to the monthly income would be unreliable. The financial commitment per month on the 15 year fixed mortgage rate was just too high. All things considered, we just didn’t want to bite off more than we could chew. The 30 year loan repayments were considerably lower than the 15 year figures.

If we have spare cash throughout the year then we can use it to reduce the capital sum. To our surprise we also discovered that we could knock years off our loan by doing this. Although this isn’t easy to achieve, in the long term it is well worth it. Our first choice would have been to go for the short term fixed rate mortgage solution but this did not help with our more immediate situation.

Anyway, everything worked out fine.

Mortgage Interest Rate Refinance

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