For many individuals, whether first time buyers or not, the prime consideration when looking at a fixed rate mortgage is the monthly repayment cost. Purchasing a home later in life means that many individuals need to have the mortgage paid off earlier. Although before signing any documents, there is a great deal to consider.
One fundamental point is to ensure that the interest rate 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 probably is. The interest rate remains the same for long term fixed rate mortgages over the life of the loan. If you are someone that wants a loan with a dependable fixed monthly mortgage payment with no hidden supplemental charges then this is the main benefit with this type of arrangement.
Both my wife and I decided to research fixed rate mortgages when we began looking at homes for sale. Although it was important 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 sustaining.
It became manifest that we had to look at fixed rate mortgages over a longer period and not just 15 year fixed mortgage rate plans. No-one likes the idea of having a mortgage when they are close to retiring, and we were no other, so it was still our hope that a 15 year fixed mortgage rate would still be an alternative.
We felt there was a good deal of pressure to have the house paid off as soon as practicable and for the most part we agreed with this. We thought about it long and hard, and despite the pressure we decided to go with the thirty year fixed mortgage rate repayment plan instead. My wife's donation to the monthly finances would probably be unreliable since she wanted to raise our child at home. Alas, a higher monthly payment is the downside of loans on a fifteen year fixed mortgage rate plan. Everything considered, we just didn't need to bite off more than we could chew as the cost of bringing up a child was an uncertain factor.
After looking at the much lower sum of money we would be making on our regular installments with a 30 year fixed rate mortgage, there wasn't any option but to go with it. Also, where possible, making a few additional lump sum payments during the year helps bring down the sum owed. By making just a few of these extra payments each year we discovered that year's could be taken off the mortgage term. This is well worth the effort in the long term but it does require some discipline. Under other conditions, we would have preferred to have taken out a loan with a 15 year fixed mortgage rate but we had to consider our other commitments as well. Despite all our worries, things turned out well for us in the end and we don't regret our decision. - 16003
One fundamental point is to ensure that the interest rate 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 probably is. The interest rate remains the same for long term fixed rate mortgages over the life of the loan. If you are someone that wants a loan with a dependable fixed monthly mortgage payment with no hidden supplemental charges then this is the main benefit with this type of arrangement.
Both my wife and I decided to research fixed rate mortgages when we began looking at homes for sale. Although it was important 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 sustaining.
It became manifest that we had to look at fixed rate mortgages over a longer period and not just 15 year fixed mortgage rate plans. No-one likes the idea of having a mortgage when they are close to retiring, and we were no other, so it was still our hope that a 15 year fixed mortgage rate would still be an alternative.
We felt there was a good deal of pressure to have the house paid off as soon as practicable and for the most part we agreed with this. We thought about it long and hard, and despite the pressure we decided to go with the thirty year fixed mortgage rate repayment plan instead. My wife's donation to the monthly finances would probably be unreliable since she wanted to raise our child at home. Alas, a higher monthly payment is the downside of loans on a fifteen year fixed mortgage rate plan. Everything considered, we just didn't need to bite off more than we could chew as the cost of bringing up a child was an uncertain factor.
After looking at the much lower sum of money we would be making on our regular installments with a 30 year fixed rate mortgage, there wasn't any option but to go with it. Also, where possible, making a few additional lump sum payments during the year helps bring down the sum owed. By making just a few of these extra payments each year we discovered that year's could be taken off the mortgage term. This is well worth the effort in the long term but it does require some discipline. Under other conditions, we would have preferred to have taken out a loan with a 15 year fixed mortgage rate but we had to consider our other commitments as well. Despite all our worries, things turned out well for us in the end and we don't regret our decision. - 16003
