Many people who are looking to buy a home consider whether they need 30 year or 15 year fixed mortgage rates for their monthly payments. Buying a home later in life means that many people want to have the mortgage paid off early. But, before you commit yourself and sign any documents, there are points you should consider.

One point to remember, is ensuring that your monthly mortgage repayment remains the same throughout the period of the loan. Steer clear of lenders that are offering unbelievable deals because they probably are. A fixed rate mortgage maintains a set interest rate during the life of the loan. This is always a good thing for those of us that don’t like surprises. 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.

Our aim was to pay of the mortgage as soon as we could without getting into trouble with high monthly payments. As well as thinking about loans with 15 year fixed mortgage rates, we also considered loans that lasted 30 years as well.

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Because we didn’t still want to have a mortgage when we close to retirement, we hoped we would be able to afford a shorter 15 year fixed rate mortgage. 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.

We found it easier reaching this conclusion when I learnt I was expecting a baby. I was going to raise our child from home so my contribution to the monthly income would be unreliable. The downside to the 15 year fixed mortgage rate was the higher monthly repayment. We could see the financial problem of getting in too deep. A thirty year loan brought the monthly payments down quite a bit.

Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. It may be easier said than done, but does pay off eventually. 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.

As it is things worked out very well.

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