It is quite normal for potential home buyers to look into 30 year or 15 year fixed mortgage rates when considering their monthly repayments. Since many of us are buying homes later in life we would like to have the house paid off as soon as possible. But, before you commit yourself and sign any documents, there are points you should 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. Many lenders offer deals that are too good to be true. Loans that have 15 year fixed mortgage rates maintain the same amount of interest throughout the life of the loan. If you are someone that wants a loan with a regular fixed repayment and no surprises then this is the main benefit with this type of agreement. We had already decided to research long term fixed mortgage rates when we started looking at homes 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. So in consideration of this point we also looked at longer, 30 year fixed mortgage rates 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. We were worried about the emphasis placed on early completion of the mortgage. 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. For us it just wasn’t feasible as we would just be in over our heads. The 30 year loan repayments were considerably lower than the 15 year figures.

We also make extra payments throughout the year to make the principal shrink quicker. 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. 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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