Considering whether you need a 30 or 15 year fixed mortgage rate is important for people looking to buy a home and concerned about their monthly payments. Many people wait until they are older before taking on the responsibility of a mortgage so an early payment of this large debt is an important issue to think about. In a situation as important as this time needs to be spent considering all the available options. A homeowner should pursue, wherever possible, a mortgage with a guaranteed interest rate.

If you are offered a deal that appears to be too good to be true than it probably is. For loans that have 15 year fixed mortgage rates, the same amount of interest is maintained throughout the life of the loan. If you are someone that wants a loan with a regular fixed repayment and no additional charges then this is the main benefit with this type of agreement. 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.

It was always our intention to clear our mortgage debt as early as we could but we did not want to over extend ourselves at the same time. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years as well. We did not 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. There was obviously very good reasons to finish paying the loan off early.

After taking everything into consideration we decided on a 30 year loan instead. There are always a number of points to think about when a decision like this has to be made.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. Our monthly payment would have been too high if we had committed ourselves to the 15 year fixed mortgage plan. We just decided we would probably get into trouble if we took this route. After looking at the much lower amount we would be paying per month with a 30 year mortgage loan, there was not any option but to go with it.

We are also able to make extra payments throughout the year to make the principal shrink quicker. By doing this you can also reduce the term of the mortgage by quite a few years. This may be difficult but well worth the effort in the a few years down the line. Our desire for a 15 year fixed rate mortgage was second place to our more immediate needs. Things worked out well anyway, even though we were unsure about it to start with.

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