Many couples buying a home are face with the question of whether to opt for a 15 or 30 year fixed mortgage rate. Most people that buy a home later in life want to have the mortgage paid off as soon as possible. It may take some time to reach a decision as there are many things to contemplate. It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage.

If you are offered a deal that appears to be too good to be true than it probably is. A fixed rate mortgage maintains a set interest rate during the period of the loan. The greatest benefit with this type of agreement is that there are no sudden unexpected amounts to pay. When my wife and I were looking at homes for sale we decided to check out the various loans available with 15 year fixed mortgage rates.

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Our aim was to pay of the mortgage as soon as we could without getting into trouble with high monthly payments. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years as well. 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. We felt that there was a great deal of emphasis 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. Although a number of things had to be pondered over, eventually the choice was made for us. Discovering my wife was having a baby was the most important reason. As she intended to raise our child at home we couldn’t rely on her financial income to the monthly expenditure. Loans that were based on 15 year fixed mortgage rates required a much higher monthly payment. All things considered, we just didn’t want to bite off more than we could chew. A thirty year loan brought the monthly payments down to a reasonable level.

If we have spare cash throughout the year then we can use it to reduce the capital sum. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. In the long term, this is a strategy well worth pursuing if you are able. We would have much preferred to have taken out a loan with a 15 year fixed mortgage rate but we had to consider our other commitments as well. All things considered, it all worked out for the best in the end.

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