For many home buyers, the only real decision they have to make is whether to have a 15 or 30 year fixed mortgage rate? Of course the goal for most people with a mortgage is to pay it off early and save themselves a great deal of money in interest repayments. But, before you commit yourself and sign any documents, there are points you need to think about. Over the period of the loan, it’s important to remember to make sure the interest rate remains the same.

If you are offered a deal that appears to be too good to be true than it probably is. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. 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.

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Although paying off the mortgage was our main priority, we did not want to have monthly payments that were uncomfortably high. This meant we had to consider 30 year fixed rate mortgage plans as well as those of 15 years. We didn’t 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.

It took some time but we finally chose to go ahead with the 30 year mortgage plan. Reaching the decision we did was the only one that made sense. The most important point was the fact I discovered my wife was having a baby. As she intended to raise our child at home we couldn’t rely on her financial income to the monthly expenditure. Loans that were based on 15 year fixed mortgage rates required a much higher monthly payment. All things considered, we just didn’t want to bite off more than we could chew. The monthly payments on a 30 year loan were quite a bit lower.

Making a few additional lump sum payments during the year helps bring down the amount owed. To our surprise we also discovered that we could knock years off our loan by doing this. It may be easier said than done, but this approach does pay off eventually. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan. In retrospect, everything worked out ok for us by going down this road.

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