Insurance Teacher

The monthly payments for 30 year or 15 year fixed mortgages are the main considerations for many people who are looking to buy a home. Early completion of a mortgage is important for those of use that leave buying a home until later in life. Of course, there are many things to consider before agreeing to anything. It is important to make sure that the interest rate doesn’t change over the course of the loan.

Steer clear of lenders that are offering unbelievable deals because they probably are. Loans agreed with a 15 year fixed mortgage keep the same interest rate throughout the entire life of the agreement. There are no hidden costs involved with this type of plan which is great for many people that want a regular monthly payment. When my wife and I were looking at homes for sale we decided to check out the various loans available with 15 year fixed mortgage rates.

Our aim was to pay of the mortgage as soon as we could without getting into trouble with high monthly payments. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years as well. Still, having a mortgage close to retirement wasn’t what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. There was a lot of pressure to have the house paid off as soon as possible.

After careful consideration we decided to take the longer term 30 year repayment option instead of the 15 year plan. Many factors were taken into account when reaching this decision. Discovering my wife was having a baby was the most important reason. Her regular monthly income would become unreliable because she wanted to be at home raising our child. 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. For us it just wasn’t feasible as we would just be in over our heads. The monthly payments on a 30 year loan were quite a bit lower.

We are also able to make extra payments throughout the year to make the principal shrink quicker. My making just a few of these payments each year we discovered that a number of years could be taken off the mortgage term. This may be difficult but well worth the effort in the a few years down the line. We would have much preferred to have taken out a loan with a 15 year fixed mortgage rate but we had to consider our other commitments as well. Anyway, everything worked out fine despite our hesitancy.

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