Her fiscal income would be uncertain and unreliable
The decision to agree to a fixed rate mortgage is usually a safe bet providing you are happy with the monthly repayment right from the start. A large number of couples these days have decided to wait and are buying homes later but they also need to settle their mortgage early. Although before signing any documents, there is a great deal to consider.
One serious point is to ensure that the interest rate doesn't alter during the life of the loan. It is always wise to avoid arrangements that look to too good to be true because they invariably are. Although, loans based on a long run fixed rate mortgage maintain the same sum of money of interest throughout their life. There are no hidden surprises which is great for many individuals that want a regular monthly mortgage payment.
In addition to considering loans for a long term, fifteen year fixed mortgage rate we also looked into loans that spanned thirty years as well. The problem was that we weren't very happy about having a mortgage still running close to when we both retired and hoped that a fifteen year fixed mortgage rate would still be available to us. We were worried about the stress placed on early completion of the mortgage but had to agree it was what we desired as well.
Looking at an even extended term mortgage was one option if we could not afford the monthly repayments on a 15 year plan. The problem was that we weren't very happy about having a mortgage still running close to when we both retired and hoped that a fifteen year fixed mortgage rate would still be accessible to us. We felt there was a lot of insistence to have the house paid off as soon as possible and for the most part we agreed with this. Discovering my wife was pregnant was the clincher, although this wasn't the only reason we reached this decision.
Because my wife preferred to be at home for our child, her fiscal income would be uncertain and unreliable. Also, loans for a 15 year fixed mortgage rate required a higher monthly payment. It was a case that we plainly didn't want to get in too deep and cause problems in the future.
Despite the fear of having a longer term loan, the thirty years fixed mortgage rate did lower the monthly repayments considerably. Fortunately, we are also able make additional payments throughout the year to make the principal shrink faster. We also found that we could lower the number of years left on the mortgage by making these odd repayments. This is well worth the effort in the long run but it does require some discipline. Although we would have much preferred the mortgage for a fifteen fixed mortgage rate we had to take our needs and fiscal capabilities into thought. But in retrospect, everything worked out fine for us ultimately.
One serious point is to ensure that the interest rate doesn't alter during the life of the loan. It is always wise to avoid arrangements that look to too good to be true because they invariably are. Although, loans based on a long run fixed rate mortgage maintain the same sum of money of interest throughout their life. There are no hidden surprises which is great for many individuals that want a regular monthly mortgage payment.
In addition to considering loans for a long term, fifteen year fixed mortgage rate we also looked into loans that spanned thirty years as well. The problem was that we weren't very happy about having a mortgage still running close to when we both retired and hoped that a fifteen year fixed mortgage rate would still be available to us. We were worried about the stress placed on early completion of the mortgage but had to agree it was what we desired as well.
Looking at an even extended term mortgage was one option if we could not afford the monthly repayments on a 15 year plan. The problem was that we weren't very happy about having a mortgage still running close to when we both retired and hoped that a fifteen year fixed mortgage rate would still be accessible to us. We felt there was a lot of insistence to have the house paid off as soon as possible and for the most part we agreed with this. Discovering my wife was pregnant was the clincher, although this wasn't the only reason we reached this decision.
Because my wife preferred to be at home for our child, her fiscal income would be uncertain and unreliable. Also, loans for a 15 year fixed mortgage rate required a higher monthly payment. It was a case that we plainly didn't want to get in too deep and cause problems in the future.
Despite the fear of having a longer term loan, the thirty years fixed mortgage rate did lower the monthly repayments considerably. Fortunately, we are also able make additional payments throughout the year to make the principal shrink faster. We also found that we could lower the number of years left on the mortgage by making these odd repayments. This is well worth the effort in the long run but it does require some discipline. Although we would have much preferred the mortgage for a fifteen fixed mortgage rate we had to take our needs and fiscal capabilities into thought. But in retrospect, everything worked out fine for us ultimately.
posted by Debt Consolidation Loan at
9:32 AM
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