Fixed Mortgage Rate - De Hol? - Written By Dehol.hu By: Jozsef Pal

The question of which is preferable: the 15 or 30 year fixed mortgage rate is one that home buyers are always unsure about. Paying the mortgage off early is important for many people that buy a home later in life. Before signing and documents, there are always many points to think about. Probably the most important point is a guarantee of a constant interest rate for the duration of the loan.

It is always wise to avoid agreements that do not appear to have any negative aspects because they invariably have but are hidden. A fixed rate mortgage maintains a set interest rate during the period of the loan. This is of great benefit for anyone that does not like surprises. My wife and I looked into the loans available with 15 year fixed mortgage rates when we were searching for a home for sale.



Even though it was important for us to pay off our loan at the earliest possible opportunity, we didn't want high, unrealistic monthly payments which we would have trouble maintaining. Considering longer term fixed rate mortgages was one option if we could not afford a 15 year plan. The 15 year fixed mortgage rate was the plan we really wanted because neither of us wanted to be still paying a mortgage when we close to retiring. There was obviously very good reasons to finish paying the loan off early.

After taking everything into consideration we decided on a 30 year loan instead. There are always a number of points to think about when a decision like this has to be made. It was easier reaching this conclusion when I learnt my wife was expecting a baby. My wife's contribution to the monthly finances would be unreliable since she intended to raise our child at home. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. We knew that it just wasn't an option and the risk was too great. The monthly payments on a 30 year loan were quite a bit lower.

We found that if we could make a few extra payments throughout each year then it would gradually reduce the principle sum 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. In the long term, this is a strategy well worth pursuing if you are able. 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. Despite all our worries, things turned out well for us and we do not regret the decision.As it is, things worked out very well for us by taking this route.

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