Cheapest Fixed Rate Mortgages
Thursday, May 8th, 2008 Subscribe To Our Feed
It is quite normal for potential home buyers to look into 30 year or 15 year fixed mortgage rates when considering their monthly repayments. Paying the mortgage off early is important for many people that buy a home later in life. But, before you commit yourself and sign any documents, there are points you need to think about. 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. A 15 year fixed rate mortgage means the interest rate remains stable for the life of the loan. The greatest benefit with this type of agreement is that there are no sudden unexpected amounts to pay. 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. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years 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. 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. There are always a number of points to think about when a decision like this has to be made. Discovering my wife was having a baby was the most important reason. My wife decided she wanted to raise our child at home so I couldn’t be certain of her monthly financial commitment to our household expenses. The problem we could see was the increased financial commitment on a monthly basis if we had opted for the 15 year fixed mortgage rate. All things considered, we just didn’t want to bite off more than we could chew. We found that the monthly repayments on a 30 year loan were more manageable.
We found that if we could make a few extra payments throughout each year then it would gradually reduce the principle sum owed. Those few extra payments also help reduce the number of years you have to pay the loan over. It may be easier said than done, but this approach does pay off eventually. Our desire for a 15 year fixed rate mortgage was second place to our more immediate needs. All things considered, it all worked out for the best in the end.
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