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.
Over the course of the loan, it's important to recall to make sure the interest rate doesn't alter. If you are offered a deal that appears to be too good to be true than it likely is. Loans arranged for a long run fixed rate mortgage keep the same interest rate throughout the entire life of the loan agreement.
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. Our aim was to pay of the mortgage as soon as we could without getting into fiscal trouble because of high monthly payments.
Considering an even longer term mortgage was one alternative if we could not afford the monthly repayments on a fifteen year plan. 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 option.
We felt there was a lot of insistence to have the house paid off as soon as possible and for the most part we agreed with this. Discovering my wife was pregnant was the clincher, although this wasn't the only reason we reached this decision. Because my wife preferred to be at home for our child, her financial income would be unsure and unreliable. Also, loans for a fifteen year fixed mortgage rate required a higher monthly payment. For us it just wasn't practicable as we would just be in over our heads and probably be worrying about money every month.
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. - 16732
Over the course of the loan, it's important to recall to make sure the interest rate doesn't alter. If you are offered a deal that appears to be too good to be true than it likely is. Loans arranged for a long run fixed rate mortgage keep the same interest rate throughout the entire life of the loan agreement.
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. Our aim was to pay of the mortgage as soon as we could without getting into fiscal trouble because of high monthly payments.
Considering an even longer term mortgage was one alternative if we could not afford the monthly repayments on a fifteen year plan. 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 option.
We felt there was a lot of insistence to have the house paid off as soon as possible and for the most part we agreed with this. Discovering my wife was pregnant was the clincher, although this wasn't the only reason we reached this decision. Because my wife preferred to be at home for our child, her financial income would be unsure and unreliable. Also, loans for a fifteen year fixed mortgage rate required a higher monthly payment. For us it just wasn't practicable as we would just be in over our heads and probably be worrying about money every month.
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. - 16732
