Know The Secrets Of Fixed Rate Mortgage By: shiva

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. Many of us are buying homes later in life these days so it is not unreasonable to have the house paid off early. However, before you rush in and sign any papers, there are points to contemplate. A homeowner should pursue, wherever possible, a mortgage with a guaranteed interest rate.

It is not uncommon to see lenders offering deals that are too good to be true. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. For those individuals that don't like hidden surprises, this is always a benefit. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale.



It was always our intention to clear our mortgage debt as early as we could but we didn't want to over extend ourselves at the same time. So in consideration of this point we also looked at longer, 30 year fixed rate mortgages as well. The problem was that we weren't very happy about having a mortgage close to when we both retired so it was our hope a 15 year fixed mortgage rate would still be available to us. We were worried about the emphasis placed on early completion of the mortgage.

Taking everything into account we finally went for the easier 30 year mortgage plan instead. There were many things that factored into this decision. Probably the over-riding decider was the fact my wife was expecting a child. Her regular monthly income would become unreliable because she wanted to be at home raising our child. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. For us it just wasn't feasible as we would just be in over our heads. 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.

Making a few additional lump sum payments during the year helps bring down the amount owed. My making just a few of these payments each year we discovered that a number of years could be taken off the mortgage term. Although this isn't easy to achieve, in the long term it is well worth it. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan. Anyway, everything worked out fine despite our hesitancy.

Want to learn more about Motagage, visit shiva's online guide on Loans at Loans Guide, and find more about mortgage

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