February 7, 2008

Low Cost Mortgage Rates

It is quite normal for potential home buyers to look into 30 year or 15 year fixed mortgage rates when considering their monthly repayments. A large number of people nowadays have decided to wait and are buying homes later but they also want to pay off their mortgage early. But, before you commit yourself and sign any documents, there are points you should consider.

It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage. It seems that some lenders are happy to offer deals that appear too good to be true and they usually are. Interest rates remain the same throughout the life of the loan for 15 year fixed rate mortgages. There are no hidden surprises which is great for many people that want a regular monthly payment. 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. It became obvious that we had to look at fixed rate mortgages over a longer period and not just 15 year fixed rate plans.

Low Cost Mortgage Rates...

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. It wasn’t easy for us because of the pressure to pay the house off early. However, after taking everything into consideration we chose a 30 year loan instead.

There were many things that factored into this. First of all, I discovered that I was having a baby. I decided I wanted to raise my child at home so I couldn’t be certain of my monthly financial contribution to our household expenses. 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 just decided we would probably get into trouble if we took this route. A thirty year loan brought the monthly payments down quite a bit.

Making a few additional lump sum payments during the year helps bring down the amount owed. Those few extra payments also help reduce the number of years you have to pay the loan over. It may be easier said than done, but does pay off eventually. 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.

Low Cost Mortgage Rates

Discover how these REAL PEOPLE purchased a beautiful home without even a credit check! - CLICK HERE!