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. Since many of us are buying homes later in life we would like to have the house paid off as soon as possible. Although before signing any documents, there are many things to consider.

One point to remember, is ensuring that your monthly mortgage repayment remains the same throughout the period of the loan. It seems that some lenders are happy to offer deals that appear too good to be true and they usually are. Loans that have 15 year fixed mortgage rates maintain the same amount of interest throughout the life of the loan. There are no hidden surprises which is great for many people that want a regular monthly payment. My husband and I looked into the loans available with 15 year fixed mortgage rates when we were looking at home for sale.

We wanted to pay off the house as soon as possible but we didn’t want to get in over our heads with high monthly payments. This meant that we had to consider 30 year fixed mortgage plans as well as 15 year mortgages.

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The 15 year fixed mortgage rate was the plan we really wanted because neither of us wanted to be still paying a mortgage when we close to retiring. Too much pressure was placed on paying the mortgage off early. After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan.

Discovering I was having a baby was the clincher, although this wasn’t the only reason we reached this decision. As I intended to raise our child at home we couldn’t rely on my financial income to the monthly expenditure. The downside to the 15 year fixed mortgage rate was the higher monthly repayment. We knew that it just wasn’t an option and the risk was too great. The 30 year loan repayments were considerably lower than the 15 year figures.

Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. My making just a few of these payments each year we discovered that year’s could be taken off the mortgage term. Although this isn’t easy to achieve, in the long term it is well worth it. Although we would have preferred the loans with 15 year fixed mortgage rates we had to take our needs and abilities into consideration.

Despite all our worries, things turned out well for us in the end.

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