It is quite normal for potential home buyers to look into 30 year or 15 year fixed mortgage rates when considering their monthly repayments. Many of us are buying homes later in life these days so it is not unreasonable to have the house paid off early. It may take some time to reach a decision as there are many things to contemplate. Home buyers looking into this need to be assured their monthly payments will not increase.



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. My wife and I had already decided to research long term fixed mortgage rates 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. When we considered fixed rate mortgages we also looked into even longer term loans that spanned 30 years as well. No-one likes the idea of having a mortgage when they are close to retirement, and we were no different, so it was still our hope that a 15 year fixed mortgage rate plan would still be an option. 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 factored into this decision. The main reason was that I found out my wife was pregnant. As she intended to raise our child at home we couldn't rely on her financial income to the monthly expenditure. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. We just simply didn't want to get in over our heads with a higher monthly payment. A thirty year loan brought the monthly payments down to a reasonable level.

Making a few additional lump sum payments during the year helps bring down the amount owed. If you make a handful of extra payments throughout a twelve month period you can knock years off of your loan. In the long term, this is a strategy well worth pursuing if you are able. 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. All things considered, it all worked out for the best in the end. Construction loans offer the same options when searching for a loan. The construction loans options include fixed and arm construction to perm loans.