When considering their monthly repayments, many people considering buying a home look into 30 year or 15 year fixed mortgage rates. 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. There are always things to take into account before signing documents.

Over the course of the loan, it’s important to remember to make sure the interest rate doesn’t change. If you are offered a deal that appears to be too good to be true than it probably is. A 15 year fixed rate mortgage means the interest rate remains fixed for the life of the loan. This is beneficial for any of us who don’t like surprises. We had already decided to research long term fixed mortgage rates when we started looking at homes for sale.

Although paying off the mortgage was our main priority, we did not want to have monthly payments that were uncomfortably high. It became obvious that we had to look at fixed rate mortgages over a longer period and not just 15 year fixed rate plans.

Refinance Home Mortgage Fixed Interest Rate...

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. After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan.

We found it easier reaching this conclusion when I learnt I was expecting a baby. I was going to raise our child from home so my contribution to the monthly income would be unreliable. Loans that had 15 year fixed mortgage rates required a higher monthly payment. 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. We also found that we were reducing the number of years left on the mortgage by making these payments. Although this isn’t easy to achieve, in the long term it is well worth it. 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.

Things worked out well anyway.

Refinance Home Mortgage Fixed Interest Rate

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