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15 Year Mortgage, Is It Right For You!

Author: JohnBottel Total views: 3 Word Count: 456

There is always a debate when home buyers have to decide on the merits of 15 or 30 year fixed mortgage rates. Buying a home later in life means that many people want to have the mortgage paid off early. Decisions of this nature need careful consideration before any commitment is made. 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. Interest rates should remain the same throughout the life of the loan for 15 year fixed rate mortgages.

If you are someone that wants a loan with a regular fixed repayment and no additional charges then this is the main benefit with this type of agreement. My wife and I looked into the loans available with 15 year fixed mortgage rates when we were searching for a home for sale.

Our aim was to pay of the mortgage as soon as we could without getting into trouble with high monthly payments. So in consideration of this point we also looked at longer, 30 year fixed rate mortgages as well.

Considering longer term fixed rate mortgages was one option if we could not afford a 15 year plan. Because we did not want to have a mortgage close to retirement, we hoped we would be able to afford a shorter 15 year fixed rate mortgage. Too much pressure was placed on the early repayment of the mortgage loan.

We thought about it long and hard and despite the pressure we decided to go with the 30 year loan plan. There were many things that lead us into making this choice. It was easier reaching this conclusion when I learned that my wife was expecting a baby.

Her regular monthly income would become unreliable because she wanted to be at home raising our child. 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. A thirty year loan brought the monthly payments down to a reasonable level.

We found that if we could make a few extra payments throughout each year then it would gradually reduce the principle sum owed. It is possible to take years off your loan if you can make a few extra payments during each year. This may be difficult but well worth the effort in the a few years down the line. Our desire for a 15 year fixed rate mortgage was second place to our more immediate needs. Things worked out well anyway, even though we were unsure about it to start with.

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