The question of which is preferable: the 15 or 30 year fixed mortgage rate is one that home buyers are always unsure about. Many people wait until they are older before taking on the responsibility of a mortgage so an early payment of this large debt is an important issue to think about. Although before signing any documents, there are many things to consider. 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. The greatest benefit with this type of agreement is that there are no sudden unexpected amounts to pay. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale.

The plan was to pay off the house as soon as possible but we did not want to be burdened with high monthly payments. Considering longer term fixed rate mortgages was one option if we could not afford a 15 year plan. 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. There was a lot of pressure to have the house paid off as soon as possible.

After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan. There were many things that lead us into making this choice. The main reason was that I found out my wife was pregnant. The contribution my wife made to the monthly finances would be unreliable since she intended to raise our child at home. Loans that were based on 15 year fixed mortgage rates required a much higher monthly payment. All things considered, we just did not want to bite off more than we could chew. A thirty year loan brought the monthly payments down to a reasonable level.

Making a few additional lump sum payments during the year helps bring down the amount owed. By doing this you can also reduce the term of the mortgage by quite a few years. This is well worth it in the long term but it does require some discipline. 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. Despite all our worries, things turned out well for us and we do not regret the decision.

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