There is always a debate when home buyers have to decide on the merits of 15 or 30 year fixed mortgage rates. No-one wants a mortgage hanging around their neck forever but with home buyers entering the market later, an early repayment of this loan is important. Of course, there are many things to consider before agreeing to anything. It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage.

If you are offered a deal that appears to be too good to be true than it probably is. A 15 year fixed rate mortgage means the interest rate remains stable for the life of the loan. For many people with regular incomes, this is a definite benefit as there are no hidden charges. 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. The problem was that we were not very happy about having a mortgage close to when we both retired so it was our hope a 15 year fixed mortgage rate would still be available to us. There was obviously very good reasons to finish paying the loan off early.

Taking everything into account we finally went for the easier 30 year mortgage plan instead. Although a number of things had to be pondered over, eventually the choice was made for us. 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 downside to the 15 year fixed mortgage rate was the higher monthly repayment. For us it just was not feasible as we would just be in over our heads. A thirty year loan brought the monthly payments down to a reasonable level.

During the year we can make additional payments which helps to reduce the amount owed. Those few extra payments also help reduce the number of years you have to pay the loan over. In the long term, this is a strategy well worth pursuing if you are able. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan. Things worked out well anyway, even though we were unsure about it to start with.

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