It is quite normal for potential home buyers to look into 30 year or 15 year fixed mortgage rates when considering their monthly repayments. With the number of people buying a home when they are older, on the increase, clearing the mortgage debt early is important. In a situation as important as this time needs to be spent considering all the available options. Probably the most important point is a guarantee of a constant interest rate for the duration of the loan.

Avoid the mortgage loans offered by some lenders, those that sound unbelievable because they usually are. The interest rate should remain the same for fixed rate mortgages until the loan is repaid. There are no hidden costs involved with this type of plan which is great for many people that want a regular monthly payment. My wife and I looked into the loans available with 15 year fixed mortgage rates when we were searching for a home 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.

After taking everything into consideration we decided on a 30 year loan instead. Although a number of things had to be pondered over, eventually the choice was made for us. Probably the over-riding decider was the fact my wife was expecting a child. Because she wanted to be at home for our child, her income would not only be uncertain but also irregular. The downside to the 15 year fixed mortgage rate was the higher monthly repayment. We could see the financial problem of getting in too deep even though there were benefits to a shorter loan period. 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.

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 is well worth it in the long term but it does require some discipline. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan. In retrospect, everything worked out ok for us by going down this road.

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