When considering their monthly repayments, many people considering buying a home look into 30 year or 15 year fixed mortgage rates. 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.

Ensuring the repayment remains the same throughout the mortgage term is very important. This means that they actually are too good to be true. 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. When my husband and I were looking at homes for sale we decided to look into 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. So in consideration of this point we also looked at longer, 30 year fixed mortgage rates as well.

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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. Too much pressure was placed on paying the mortgage off early. After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan.

After finding out I was having a baby, reaching the decision we did was the only one that made sense. I decided I wanted to raise my child at home so I couldn’t be certain of my monthly financial contribution to our household expenses. The downside to the 15 year fixed mortgage rate was the higher monthly repayment. For us it just wasn’t feasible as we would just be in over our heads. A thirty year loan brought the monthly payments down quite a bit.

If we have spare cash throughout the year then we can use it to reduce the capital sum. By doing this you can also reduce the term of the mortgage by years. Difficult this may be, but well worth the effort in the long run. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan.

As it is things worked out very well.

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