National Average 30 Year Fixed Mortgage Rate
Many couples buying a home are face with the question of whether to opt for a 15 or 30 year fixed mortgage rate. Early completion of a mortgage is important for those of us that leave buying a home until later in life. In a situation as important as this, time needs to be spent considering all the available options. One point to remember is ensuring that your monthly mortgage repayment remains the same throughout the entire period of the loan.
If you are offered a deal that appears to be too good to be true than it probably is. A fixed rate mortgage maintains a set interest rate during the period 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. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale.
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. When we considered fixed rate mortgages we also looked into even longer term loans that spanned 30 years as well. Still, having a mortgage close to retirement was not what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. We felt that there was a great deal of emphasis on paying the mortgage off early.
After taking everything into consideration we decided on a 30 year loan instead. Many factors were taken into account when reaching this decision.The most important point was the fact I discovered my wife was having 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.
The problem we could see was the increased financial commitment on a monthly basis if we had opted for the 15 year fixed mortgage rate. We just simply did not want to get in over our heads with a higher monthly payment. The monthly payments on a 30 year loan were quite a bit lower.
Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. Those few extra payments also help reduce the number of years you have to pay the loan over. This is well worth it in the long term but it does require some discipline. It was hard going against our preference for a shorter term, 15 year fixed rate mortgage, but we had to think about more immediate needs and abilities. All things considered, it all worked out for the best in the end.
If you are offered a deal that appears to be too good to be true than it probably is. A fixed rate mortgage maintains a set interest rate during the period 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. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale.
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. When we considered fixed rate mortgages we also looked into even longer term loans that spanned 30 years as well. Still, having a mortgage close to retirement was not what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. We felt that there was a great deal of emphasis on paying the mortgage off early.
After taking everything into consideration we decided on a 30 year loan instead. Many factors were taken into account when reaching this decision.The most important point was the fact I discovered my wife was having 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.
The problem we could see was the increased financial commitment on a monthly basis if we had opted for the 15 year fixed mortgage rate. We just simply did not want to get in over our heads with a higher monthly payment. The monthly payments on a 30 year loan were quite a bit lower.
Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. Those few extra payments also help reduce the number of years you have to pay the loan over. This is well worth it in the long term but it does require some discipline. It was hard going against our preference for a shorter term, 15 year fixed rate mortgage, but we had to think about more immediate needs and abilities. All things considered, it all worked out for the best in the end.
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