Many people who are looking to buy a home consider whether they need 30 year or 15 year fixed mortgage rates for their monthly payments. Early completion of a mortgage is important for those of use that leave buying a home until later in life. However, before you rush in and sign any papers there are points 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. 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. The greatest benefit with this type of agreement is that there are no sudden surprises. My husband and I looked into the loans available with 15 year fixed mortgage rates when we were looking at home for sale.

Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. 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 a lot of pressure to have the house paid off as soon as possible. It took some time but we finally decided to go ahead with the 30 year mortgage plan.

We found it easier reaching this conclusion when I learnt I was expecting 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 knew that it just wasn’t an option and the risk was too great. 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. By doing this you can also reduce the term of the mortgage by years. This is well worth it in the long term but it does require some discipline. 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.

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