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. Of course, there are many things to consider before signing any papers.

One important point is to ensure that the interest rate doesn’t change during the life of the loan. 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. For many people with regular incomes, this sis a definite benefit as there are no hidden charges. 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. So in consideration of this point we also looked at longer, 30 year fixed mortgage rates as well.

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Still, having a mortgage close to retirement wasn’t what we were looking for, so we hoped we would be able to get a loan with a 15 year fixed mortgage. There was obviously very good reasons to finish paying the loan 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. Because I wanted to be at home for our child, my financial income would be uncertain and not regular. Unfortunately, a higher monthly payment was the downside of loans with a 15 year fixed mortgage rate. We could see the financial problem of getting in too deep. 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.

Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. To our surprise we also discovered that we could knock years off our loan by doing this. Difficult this may be, but well worth the effort in the long run. 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.

As it is things worked out very well.

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