Considering whether you need a 30 or 15 year fixed mortgage rate is important for people looking to buy a home and concerned about their monthly payments. Buying a home later in life means that many people want to have the mortgage paid off early. However, before you rush in and sign any papers there are points to consider.

One important point is to ensure that the interest rate doesn’t change during the life of the loan. It seems that some lenders are happy to offer deals that appear too good to be true and they usually are. A fixed rate mortgage maintains a set interest rate during the life of the loan. This is beneficial for any of us who don’t like surprises. My husband and I looked into the loans available with 15 year fixed mortgage rates when we were looking at home for sale.

It was always our intention to pay off our mortgage as early as possible but we didn’t want to over extend ourselves at the same time. In addition to considering loans with 15 year fixed mortgage rates we also looked into loans that spanned 30 years as well.

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We didn’t really like the idea of having a mortgage as we were approaching the age of retirement so we 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. Taking everything into account we finally went for the easier 30 year mortgage plan instead.

There were many things that lead us to this decision, but the main one was that I found out I was having a baby. My contribution to the monthly finances was unreliable since I was going to raise our child at home. The problem we could see was the increased financial commitment on a monthly basis if we had opted for the 15 year fixed mortgage rate. We knew that it just wasn’t an option and the risk was too great. The monthly payments on a 30 year loan were quite a bit lower.

We also make extra payments throughout the year to make the principal shrink quicker. It is possible to take years off your loan if you can make a few extra payments during each year. In the long term, this is a strategy well worth pursuing. 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.

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

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