Debt Consolidation Credit Counseling In Austin Debt Consolidation Credit Counseling In Austin

Find out more on Debt Consolidation Credit Counseling In Austin Now!

Wednesday, December 10, 2008

National Average 30 Year Fixed Mortgage Rate

By Louis Soul

It is quite normal for potential home buyers to look into 30 year or 15 year fixed mortgage rates when considering their monthly repayments. No-one wants a mortgage hanging around their neck forever but with homebuyers entering the market later, an early repayment of this loan is important. Of course, there are many things to consider before agreeing to anything. One important point is to ensure that the interest rate does not change during the life of the loan.

It is always wise to avoid agreements that do not appear to have any negative aspects because they invariably have but are hidden. A 15 year fixed rate mortgage means the interest rate remains stable for 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.

The plan was to pay off the house as soon as possible but we did not want to be burdened with high monthly payments. When we considered fixed rate mortgages we also looked into even longer term loans that spanned 30 years as well. The 15 year fixed mortgage rate was the plan we really wanted because neither of us wanted to be still paying a mortgage when we close to retiring. We felt that there was a great deal of emphasis on paying the mortgage off early.

Taking everything into account we finally went for the easier 30 year mortgage plan instead. Many factors were taken into account when reaching this decision.Probably the over-riding decider was the fact my wife was expecting a child.

The contribution my wife made to the monthly finances would be unreliable since she intended to raise our child at home. Loans that were based on 15 year fixed mortgage rates required a much higher monthly payment. We just decided we would probably get into trouble if we took this route. Despite the trepidation of having a longer term loan, it did reduce the repayments considerably.

Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. By doing this you can also reduce the term of the mortgage by quite a few years. This takes some discipline but it is well worth the effort it in the long term. 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. As it is, things worked out very well for us by taking this route.

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home