Mortgage Loans
The monthly repayments for 30 year or 15 year fixed mortgage 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. Although before signing any
documents, there are many things to consider.
It is always a good idea to confirm that the interest rate does
not alter during the term of the mortgage. This means that they
actually are too good to be true. Loans agreed with a 15 year fixed
mortgage keep the same interest rate throughout the entire life of
the loan agreement. This is beneficial for any of us who don’t
like surprises. We had already decided to research long term fixed
mortgage rates when we started looking at homes for sale.
We wanted to pay off the house as soon as possible but we didn't
want to get in over our heads with high monthly payments. So in
consideration of this point we also looked at longer, 30 year fixed
mortgage rates as well.
The 15 year fixed mortgage rate was the plan we really wanted
because neither of us wanted to be still paying a mortgage when we
close to retiring. We felt that there was a great deal of pressure
to pay the mortgage off early. Taking everything into account we
finally went for the easier 30 year mortgage plan instead.
Discovering I was having a baby was the clincher, although this
wasn't the only reason we reached this decision. I was going to
raise our child from home so my contribution to the monthly income
would be unreliable. Unfortunately, a higher monthly payment was the downside
of loans with a 15 year fixed mortgage rate. We knew that it just
wasn't an option and the risk was too great. Despite the
trepidation of having a longer term loan, it did reduce the
repayments considerably.
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. Although this isn't easy to achieve, in
the long term it is well worth it. Although we would have preferred
the loans with 15 year fixed mortgage rates we had to take our
needs and abilities into consideration.
Despite all our worries, things turned out well for us in the
end.
|