Information About Fix Rate Mortgage
By admin | July 14, 2008
Many couples buying a home are face with the question of whether to opt for a 15 or 30 year fixed mortgage rate. Early completion of a mortgage is important for those of use that leave buying a home until later in life. Although before signing any documents, there are many things to consider. Home buyers looking into this need to be assured their monthly payments will not increase.
Steer clear of lenders that are offering unbelievable deals because they probably are. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. For those individuals that don’t like hidden surprises, this is always a benefit. When we were looking to buy a home, my wife and I decided to go for a loan with a 15 year fixed mortgage rate.
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. No-one likes the idea of having a mortgage when they are close to retirement, and we were no different, so it was still our hope that a 15 year fixed mortgage rate plan would still be an option. It wasn’t easy for us because of the stress to pay the house off early.
After taking everything into consideration we decided on a 30 year loan instead. Reaching the decision we did was the only one that made sense. The main reason was that I found out my wife was pregnant. 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 downside to the 15 year fixed mortgage rate was the higher monthly repayment. We just decided we would probably get into trouble if we took this route. The 30 year loan repayments were considerably lower than the 15 year figures.
If we have spare cash throughout the year then we can use it to reduce the capital sum. It is possible to take years off your loan if you can make a few extra payments during each year. This takes some discipline but it is well worth the effort it in the long term. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan. In retrospect, everything worked out ok for us by going down this road.
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