When considering their monthly repayments, many people considering buying a home look into 30 year or 15 year fixed mortgage rates. Early completion of a mortgage is important for those of use that leave buying a home until later in life. But, before you commit yourself and sign any documents, there are points you should consider.

Ensuring the repayment remains the same throughout the mortgage term is very important. This means that they actually are too good to be true. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the loan agreement. For those of us that don’t like hidden surprises, this is always a good thing. When we were looking to buy a home, my husband and I decided to go for a loan with a 15 year fixed mortgage rate.

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 problem was that we weren’t very happy about having a mortgage close to when we both retired and hoped that a 15 year fixed mortgage rate would still be available to us. We felt that there was a great deal of pressure to pay the mortgage off early. 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. My contribution to the monthly finances was unreliable since I was going to raise our child at home. The financial commitment per month on the 15 year fixed mortgage rate was just too high. We just decided we would probably get into trouble if we took this route. The 30 year loan repayments were considerably lower than the 15 year figures.

If we have spare cash throughout the year then we can use it to reduce the capital sum. My making just a few of these payments each year we discovered that year’s could be taken off the mortgage term. In the long term, this is a strategy well worth pursuing. It was hard going against our preference for a shorter term fixed rate mortgage but we had to think about more immediate needs and abilities.

As it is things worked out very well.

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