For many home buyers, the only real decision they have to make is whether to have 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. In a situation as important as this time needs to be spent considering all the available options. It is always a good idea to confirm that the interest rate does not alter during the term of the mortgage.
It is not uncommon to see lenders offering deals that are too good to be true. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. This is of great benefit for anyone that does not like surprises. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale.
Even though it was important for us to pay off our loan at the earliest possible opportunity, we didn't want high, unrealistic monthly payments which we would have trouble maintaining. Considering longer term fixed rate mortgages was one option if we could not afford a 15 year plan. We didn't really like the prospect of having a mortgage as we approached retirement so were really hoping to get one of the loans with 15 year fixed mortgage rates. We felt that there was a great deal of emphasis on paying the mortgage off early.
We thought about it long and hard and despite the pressure we decided to go with the 30 year loan plan. Although a number of things had to be pondered over, eventually the choice was made for us. Discovering my wife was having a baby was the most important reason. As she intended to raise our child at home we couldn't rely on her financial income to the monthly expenditure. 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. 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.
If we have spare cash throughout the year then we can use it to reduce the capital sum. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. It may be easier said than done, but this approach does pay off eventually. Although we would have much preferred a loan with a 15 year fixed mortgage rate we had to take our needs and abilities into consideration. Anyway, everything worked out fine despite our hesitancy.
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James Redder markets a Finance website. If the finance info was helpful, why not get the info that will assist you now? Goto Refinance After Bankruptcy website.
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