The monthly repayments for 30 year or 15 year fixed mortgage rates are just one important consideration for many people who are looking to buy a home. Buying a home later in life means that many people want to have the mortgage paid off early. Of course, there are many things to consider before agreeing to anything. Home buyers looking into this need to be assured their monthly payments will not increase.
It is always wise to avoid agreements that do not appear to have any negative aspects because they invariably have but are hidden. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. This is always a good thing for those people that do 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.
Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. Considering longer term fixed rate mortgages was one option if we could not afford a 15 year plan. Still, having a mortgage close to retirement was not what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. Too much pressure was placed on the early repayment of the mortgage loan.
After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan. There were many things that factored into this decision. The most important point was the fact I discovered my wife was having a baby. As she intended to raise our child at home we could not rely on her financial income to the monthly expenditure. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. All things considered, we just did not want to bite off more than we could chew. The monthly payments on a 30 year loan were quite a bit lower.
If we have spare cash throughout the year then we can use it to reduce the capital sum. Those few extra payments also help reduce the number of years you have to pay the loan over. This may be difficult but well worth the effort in the a few years down the line. Our first choice would have been to go for the short term 15 year fixed rate mortgage solution but this did not help with our more immediate situation. In retrospect, everything worked out ok for us by going down this road.
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