For many home buyers, the only real decision they have to make is whether to have a 15 or 30 year fixed mortgage rate? Paying the mortgage off early is important for many people that buy a home later in life. There are always things to take into account before signing documents. One point to remember is ensuring that your monthly mortgage repayment remains the same throughout the entire period of the loan.

Avoid the mortgage loans offered by some lenders, those that sound unbelievable because they usually are. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the agreement. For many people with regular incomes, this is a definite benefit as there are no hidden charges. When my wife and I were looking at homes for sale we decided to check out the various loans available with 15 year fixed mortgage rates.

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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. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years as well. 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 felt that there was a great deal of emphasis on paying the mortgage off early.

Taking everything into account we finally went for the easier 30 year mortgage plan instead. There are always a number of points to think about when a decision like this has to be made. The most important point was the fact I discovered my wife was having a baby. My wife was going to raise our child from home so her addition to the monthly income would be restricted. The financial commitment per month on the 15 year fixed mortgage rate was just too high. We could see the financial problem of getting in too deep even though there were benefits to a shorter loan period. 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. It may be easier said than done, but this approach does pay off eventually. Our desire for a 15 year fixed rate mortgage was second place to our more immediate needs. All things considered, it all worked out for the best in the end.

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