The monthly payments for 30 year or 15 year fixed mortgages are the main considerations for many people who are looking to buy a home. Since many of us are buying homes later in life we would like to have the house paid off as soon as possible. But, before you commit yourself and sign any documents, there are points you should consider.

It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage. It is always wise to avoid agreements that appear to too good to be true because they invariably are. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the loan agreement. This is always a good thing for those of us that don’t like surprises. Both my husband and I decided to research fixed rate mortgages when we started looking at homes for sale.

Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. In addition to considering loans with 15 year fixed mortgage rates we also looked into loans that spanned 30 years as well.

Current Home Loan Mortgage Rate...

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. There was a lot of pressure to have the house paid off as soon as possible. After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan.

We found it easier reaching this conclusion when I learnt I was expecting a baby. As I intended to raise our child at home we couldn’t rely on my financial income to the monthly expenditure. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. We could see the financial problem of getting in too deep. Despite the trepidation of having a longer term loan, it did reduce the repayments considerably.

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. Difficult this may be, but well worth the effort in the long run. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan.

But in retrospect, everything worked out ok in the end.

Current Home Loan Mortgage Rate

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