It is quite normal for potential home buyers to look into 30 year or 15 year fixed mortgage rates when considering their monthly repayments. Since many of us are buying homes later in life we would like to have the house paid off as soon as possible. Of course, there are many things to consider before signing any papers.

One point to remember, is ensuring that your monthly mortgage repayment remains the same throughout the period of the loan. This means that they actually are too good to be true. The interest rate remains the same for fixed rate mortgages over the life of the loan. For many people with regular incomes, this sis a definite benefit as there are no hidden charges. 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. In addition to considering loans with 15 year fixed mortgage rates we also looked into loans that spanned 30 years as well.

Fixed Mortgage Rates...

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. We were worried about the emphasis placed on early completion of the mortgage. We decided on a 30 year loan after looking at all the other possibilities.

There were many things that factored into this. First of all, I discovered that I was having a baby. I was going to raise our child from home so my contribution to the monthly income would be unreliable. 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. Despite the trepidation of having a longer term loan, it did reduce the repayments considerably.

We found that if we could make a few extra payments throughout each year then it would gradually reduce the principle sum owed. My making just a few of these payments each year we discovered that year’s could be taken off the mortgage term. This is well worth it in the long term but it does require some discipline. Our first choice would have been to go for the short term fixed rate mortgage solution but this did not help with our more immediate situation.

Things worked out well anyway.

Fixed Mortgage Rates

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