A Look at the Lowest Fixed Rate Mortgages
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. There are always things to take into account before signing documents. 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. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the agreement. For those individuals that do not like hidden surprises, this is always a benefit. My wife and I looked into the loans available with 15 year fixed mortgage rates when we were searching for a home for sale.
Although paying off the mortgage was our main priority, we did not want to have monthly payments that were uncomfortably high. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years as well. We did not really like the prospect of having a mortgage as we approached retirement so were really hoping to get one of the loans with 15 year fixed mortgage rates. There was obviously very good reasons to finish paying the loan off early.
It took some time but we finally chose to go ahead with the 30 year mortgage plan. Although a number of things had to be pondered over, eventually the choice was made for us.Finding out my wife was having a baby made making the choice so much easier! The contribution my wife made 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. For us it just was not feasible as we would just be in over our heads. Despite the trepidation of having a longer term loan, it did reduce the repayments considerably.
Making a few additional lump sum payments during the year helps bring down the amount owed. Those few extra payments also help reduce the number of years you have to pay the loan over. This is well worth it in the long term but it does require some discipline. 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. In retrospect, everything worked out ok for us by going down this road.
Steer clear of lenders that are offering unbelievable deals because they probably are. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the agreement. For those individuals that do not like hidden surprises, this is always a benefit. My wife and I looked into the loans available with 15 year fixed mortgage rates when we were searching for a home for sale.
Although paying off the mortgage was our main priority, we did not want to have monthly payments that were uncomfortably high. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years as well. We did not really like the prospect of having a mortgage as we approached retirement so were really hoping to get one of the loans with 15 year fixed mortgage rates. There was obviously very good reasons to finish paying the loan off early.
It took some time but we finally chose to go ahead with the 30 year mortgage plan. Although a number of things had to be pondered over, eventually the choice was made for us.Finding out my wife was having a baby made making the choice so much easier! The contribution my wife made 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. For us it just was not feasible as we would just be in over our heads. Despite the trepidation of having a longer term loan, it did reduce the repayments considerably.
Making a few additional lump sum payments during the year helps bring down the amount owed. Those few extra payments also help reduce the number of years you have to pay the loan over. This is well worth it in the long term but it does require some discipline. 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. In retrospect, everything worked out ok for us by going down this road.
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