Things turned out well for us in the end
For many couples, whether first time buyers or not, the prime thought when looking at a fixed rate mortgage is the monthly payment cost. A large number of people these days have decided to wait and are purchasing homes later but they also wish to settle their mortgage earlier. Although before signing any documentation, there is a great deal to consider.
Over the course of the mortgage, it's fundamental to remember to make sure the rate of interest doesn't change. It is always wise to avoid arrangements that appear to too good to be true because they invariably are. Loans arranged for a long term fixed rate mortgage keep the same rate of interest throughout the entire life of the mortgage agreement.
In addition to considering loans for a long term, fifteen year fixed mortgage rate we also looked into loans that spanned 30 years as well. The problem was that we weren't very happy about having a mortgage still running close to when we both retired and hoped that a fifteen year fixed mortgage rate would still be accessible to us. We felt there was lots of insistence to have the house settled as soon as practicable and for the most part we agreed with this.
There were many things that factored into this; first of all, I learned that my wife was having a baby. Because my wife wanted to be at home for our child, her financial income would be uncertain and unreliable. Alas, a higher monthly payment is the downside of loans on a 15 year fixed mortgage rate plan. It was a case that we plainly didn't wish to get in too deep and cause troubles in the future.
My wife's donation to the monthly finances would in all likelihood be unreliable since she wanted to raise our child at home. The problem we could see was the raised fiscal commitment with a higher monthly payment if we had opted for the shorter fifteen year fixed rate mortgage. For us it just wasn't possible as we would just be in over our heads and likely be worrying about money every month.
As such the thirty year fixed mortgage rate brought the monthly installments down quite a bit. During the year, if we have some spare cash, we can make additional installments which helps to lower the sum of money owed. Just by making a handful of supplemental payments throughout a twelve month period you can knock years off of your loan period. Although this takes some discipline, it is well worth it in the long term. Under different conditions, we would have preferred to have taken out a mortgage 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.
Over the course of the mortgage, it's fundamental to remember to make sure the rate of interest doesn't change. It is always wise to avoid arrangements that appear to too good to be true because they invariably are. Loans arranged for a long term fixed rate mortgage keep the same rate of interest throughout the entire life of the mortgage agreement.
In addition to considering loans for a long term, fifteen year fixed mortgage rate we also looked into loans that spanned 30 years as well. The problem was that we weren't very happy about having a mortgage still running close to when we both retired and hoped that a fifteen year fixed mortgage rate would still be accessible to us. We felt there was lots of insistence to have the house settled as soon as practicable and for the most part we agreed with this.
There were many things that factored into this; first of all, I learned that my wife was having a baby. Because my wife wanted to be at home for our child, her financial income would be uncertain and unreliable. Alas, a higher monthly payment is the downside of loans on a 15 year fixed mortgage rate plan. It was a case that we plainly didn't wish to get in too deep and cause troubles in the future.
My wife's donation to the monthly finances would in all likelihood be unreliable since she wanted to raise our child at home. The problem we could see was the raised fiscal commitment with a higher monthly payment if we had opted for the shorter fifteen year fixed rate mortgage. For us it just wasn't possible as we would just be in over our heads and likely be worrying about money every month.
As such the thirty year fixed mortgage rate brought the monthly installments down quite a bit. During the year, if we have some spare cash, we can make additional installments which helps to lower the sum of money owed. Just by making a handful of supplemental payments throughout a twelve month period you can knock years off of your loan period. Although this takes some discipline, it is well worth it in the long term. Under different conditions, we would have preferred to have taken out a mortgage 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.
posted by Credit Counseling at
9:25 AM
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