Fixed Rate Mortgage

There is always a debate when home buyers have to decide on the merits of 15 or 30 year fixed mortgage rates. Many of us are buying homes later in life these days so it is not unreasonable to have the house paid off early. But, before you commit yourself and sign any documents, there are points you need to think about. For almost every homeowner, having constant interest rate is critical if they are to meet payments without difficulty.
It is not uncommon to see lenders offering deals that are too good to be true. Interest rates remain the same throughout the life of the loan for 15 year fixed rate mortgages. BTW, I found a site about apartments for sale Mexico in Spanish: departamentos en venta Mexico.There are no hidden costs involved with this type of plan which is great for many people that want a regular monthly payment. My wife and I looked into the loans available with 15 year fixed mortgage rates when we were searching for a home for sale.
Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years as well. 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. There was a lot of pressure to have the house paid off as soon as possible.
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 learnt my wife was expecting a baby. My wife decided she wanted to raise our child at home so I could not be certain of her monthly financial commitment to our household expenses. Unfortunately, a higher monthly payment was the downside for loans with a 15 year fixed mortgage rate. All things considered, we just did not want to bite off more than we could chew. 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. We also found that we were reducing the number of years left on the mortgage by making these payments. This is well worth it in the long term but it does require some discipline. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan. As it is, things worked out very well for us by taking this route.


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Charmaine Arnaiz