Should I Get A Fixed Rate Mortgage? By: Carol Bell

Many couples buying a home are face with the question of whether to opt for a 15 or 30 year fixed mortgage rate. Paying the mortgage off early is important for many people that buy a home later in life. Of course, there are many things to consider before agreeing to anything. It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage.

Steer clear of lenders that are offering unbelievable deals because they probably are. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. This is always a good thing for those people that do not like surprises. When we were looking to buy a home, my wife and I decided to go for a loan with a 15 year fixed mortgage rate.

Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. When we considered fixed rate mortgages we also looked into even longer term loans that spanned 30 years as well. Still, having a mortgage close to retirement was not what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. We felt that there was a great deal of emphasis on paying the mortgage off early.

After taking everything into consideration we decided on a 30 year loan instead. Reaching the decision we did was the only one that made sense.Probably the over-riding decider was the fact my wife was expecting a child. My wife decided she wanted to raise our child at home so I could not be certain of her monthly financial commitment to our household expenses. The financial commitment per month on the 15 year fixed mortgage rate was just too high. For us it just was not feasible as we would just be in over our heads. We found that the monthly repayments on a 30 year loan were more manageable.

We are also able to make extra payments throughout the year to make the principal shrink quicker. By doing this you can also reduce the term of the mortgage by quite a few years. This takes some discipline but it is well worth the effort it in the long term. Although we would have much preferred a loan with a 15 year fixed mortgage rate we had to take our needs and abilities into consideration. All things considered, it all worked out for the best in the end.

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