15 Year Fixed Mortgage Rates
Many people who are looking to buy a home consider whether they need 30 year or 15 year fixed mortgage rates for their monthly payments. Since many of us are buying homes later in life we would like to have the house paid off as soon as possible. Of course, there are many things to consider before signing any papers.
It is important to remember that you want to make sure that the interest rate doesn’t change over the course of the loan. Many lenders offer deals that are too good to be true. This means that they actually are too good to be true. Loans that have 15 year fixed mortgage rates maintain the same amount of interest throughout the life of the loan. This is beneficial for any of us who don’t like surprises.
When my husband and I were looking at homes for sale we decided to look into the various loans available with 15 year fixed mortgage rates. 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.
In addition to considering loans with 15 year fixed mortgage rates we also looked into loans that spanned 30 years as well. We didn’t really like the idea of having a mortgage as we were approaching the age of retirement so we were really hoping to get one of the loans with 15 year fixed mortgage rates. There was a lot of pressure to have the house paid off as soon as possible.
However, after taking everything into consideration we chose a 30 year loan instead. There were many things that factored into this. First of all, I discovered that I was having a baby. My contribution to the monthly finances was unreliable since I was going to raise our child at home. Loans that had 15 year fixed mortgage rates required a higher monthly payment. We simply didn’t want to get in over our heads.
A thirty year loan brought the monthly payments down quite a bit. We also make extra payments throughout the year to make the principal shrink quicker. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. This takes some discipline but it is well worth it in the long run.
Although we would have preferred the loans with 15 year fixed mortgage rates we had to take our needs and abilities into consideration. As it is things worked out very well.