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. Although before signing any documents, there are many things to consider.

It is important to remember that you want to make sure that the interest rate doesn’t change over the course of the loan. Avoid the mortgage loans offered by some lenders, the one that sound unbelievable because they usually are. A fixed rate mortgage maintains a set interest rate during the life of the loan. There are no hidden surprises which is great for many people that want a regular monthly payment. We had already decided to research long term fixed mortgage rates when we started looking at homes 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. As well as thinking about loans with 15 year fixed mortgage rates, we also considered loans that lasted 30 years as well.

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Because we didn’t still want to have a mortgage when we close to retirement, we hoped we would be able to afford a shorter 15 year fixed rate mortgage. There was obviously very good reasons to finish paying the loan off early. It took some time but we finally decided to go ahead with the 30 year mortgage plan.

There were many things that factored into this. First of all, I discovered that I was having a baby. Because I wanted to be at home for our child, my financial income would be uncertain and not regular. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. 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.

Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. Those few extra payments also help reduce the number of years you have to pay the loan over. This takes some discipline but it is well worth it in the long run. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan.

Things worked out well anyway.

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