Many couples looking to purchase a home consider whether a long run fixed rate mortgage would be best for their monthly installments. Currently, many of us are waiting until later in life to purchase a home but still want to have the house payed off as soon as possible. But, before you commit yourself and sign any papers, there are a number of issues you should consider.
One essential point is to ensure that the rate of interest doesn’t change during the life of the mortgage. If you are offered a deal that appears to be too good to be true than it in all likelihood is. Loans arranged for a long term fixed rate mortgage keep the same interest rate throughout the entire life of the mortgage agreement. There are no hidden surprises which is great for many people that want a dependable monthly mortgage payment. When my wife and I were looking at homes for sale we decided to look into the assorted loans available with a fixed rate mortgage. Although it was essential for us to pay off our loan as soon as we could, we didn’t need high, unrealistic monthly payments which we would have a problem maintaining.
There are no hidden surprises which is great for many individuals that want a regular monthly mortgage payment. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale. Although it was essential for us to pay off our loan as soon as we could, we didn’t want high, unrealistic monthly repayments which we would have a problem keeping.
It became manifest that we had to look at fixed rate mortgages over a extended period and not just fifteen year fixed mortgage rate programs. We didn’t really like the idea of having a mortgage as we drew close to the age of retiring so we were really hoping to get one of the loans with a shorter fifteen year fixed rate mortgage. There was obviously very good reasons to finish paying the mortgage off earlier if at all possible.
Discovering my wife was pregnant was the clincher, although this wasn’t the only reason we reached this decision. Because my wife wanted to raise our child at home we couldn’t be certain of her monthly fiscal contribution to our home expenditure. The problem we could see was the raised financial commitment with a higher monthly repayment if we had chosen for the shorter 15 year fixed rate mortgage. It was a case that we merely didn’t want to get in too deep and cause troubles in the future.
Despite the trepidation of having a longer term loan, the thirty years fixed mortgage rate did lower the monthly installments considerably. Also, where possible, making a few additional lump sum repayments during the year helps bring down the sum of money owed. Just by making a handful of extra payments throughout a one year period you can knock years off of your mortgage period. Although this isn’t easy to achieve, in the long run it is well worth it. Taking our current needs and financial abilities into account was more serious than our desire for a shorter term fifteen year fixed mortgage rate program. But looking back, everything worked out right for us in the long run.