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. Since many of us are buying homes later in life we would like to have the house paid off as soon as possible. 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. Steer clear of lenders that are offering unbelievable deals because they probably are. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the loan agreement. This is beneficial for any of us who don’t like surprises. When we were looking to buy a home, my husband and I decided to go for a loan with a 15 year fixed mortgage rate.

Our aim was to pay of the mortgage as soon as we could without getting into trouble with high monthly payments. This meant that we had to consider 30 year fixed mortgage plans as well as 15 year mortgages.

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The problem was that we weren’t very happy about having a mortgage close to when we both retired and hoped that a 15 year fixed mortgage rate would still be available to us. It wasn’t easy for us because of the pressure to pay the house off early. It took some time but we finally decided to go ahead with the 30 year mortgage plan.

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 downside to the 15 year fixed mortgage rate was the higher monthly repayment. For us it just wasn’t feasible as we would just be in over our heads. After looking at the much lower amount we would be paying per month with a 30 year mortgage loan, there wasn’t any option but to go with it.

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. Although this isn’t easy to achieve, in the long term it is well worth it. It was hard going against our preference for a shorter term fixed rate mortgage but we had to think about more immediate needs and abilities.

Anyway, everything worked out fine.

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