When considering their monthly repayments, many people considering buying a home look into 30 year or 15 year fixed mortgage rates. Paying the mortgage off early is important for many people that buy a home later in life. But, before you commit yourself and sign any documents, there are points you should consider.

One point to remember, is ensuring that your monthly mortgage repayment remains the same throughout the period of the loan. Avoid the mortgage loans offered by some lenders, the one that sound unbelievable because they usually are. A 15 year fixed rate mortgage means the interest rate remains fixed for the life of the loan. For those of us that don’t like hidden surprises, this is always a good thing. 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. Considering longer term mortgages was one option if we could not afford a 15 year plan.

Mortgage Refinance Rates...

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 pressure to pay the mortgage off early. We thought about it long and hard and Despite the pressure we decided to go with the 30 year loan plan.

Although many things were taken into account when reaching this decision, 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. Unfortunately, a higher monthly payment was the downside of loans with a 15 year fixed mortgage rate. We simply didn’t want to get in over our heads. Despite the trepidation of having a longer term loan, it did reduce the repayments considerably.

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. In the long term, this is a strategy well worth pursuing. Our first choice would have been to go for the short term fixed rate mortgage solution but this did not help with our more immediate situation.

But in retrospect, everything worked out ok in the end.

Mortgage Refinance Rates

Learn How to Beat the Lenders at Their Own Game! - CLICK HERE!

Technorati Tags: Current Mortgage Interest Rates London, Commercial Direct Lender Mortgage Rate Calculator, Uk 5 Year Fixed Rate Mortgages