Despite all our concerns, things turned out well
For many couples, whether first time buyers or not, the prime consideration when looking at a fixed rate mortgage is the monthly installmet cost. Purchasing a home later in life means that many individuals need to have the mortgage settled earlier. However, there are many factors to consider before signing any papers.
An fundamental thought to remember is that you need to make sure that the interest rate doesn't alter during the course of the loan. Of course, many lenders seem to offer deals that are too good to be true. Loans arranged for a long run fixed rate mortgage keep the same rate of interest throughout the entire life of the loan agreement. This has manifest benefits, especially for anyone who doesn't like surprises especially those associated with variable monthly mortgage repayments.
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.
However, after taking everything into consideration we chose a thirty year fixed mortgage rate instead. Because my wife desired to raise our child at home we couldn't be certain of her monthly financial contribution to our family spending. The problem we could see was the raised fiscal commitment with a higher monthly repayment if we had opted for the shorter fifteen year fixed rate mortgage. For us it just wasn't feasible as we would just be in over our heads and probably be worrying about money every month.
Discovering my wife was pregnant was the clincher, although this wasn't the only reason we reached this decision. Because my wife wanted to raise our child at home we couldn't be certain of her monthly fiscal contribution to our home expenditure. The problem we could see was the raised financial commitment with a higher monthly repayment if we had chosen for the shorter 15 year fixed rate mortgage. It was a case that we merely didn't want to get in too deep and cause troubles in the future.
We also found that we could lower the number of years left on the mortgage by making these odd payments. Although this takes some discipline, it is well worth it in the long run. Although we would have much preferred the loan for a fifteen fixed mortgage rate we had to take our needs and fiscal capabilities into consideration. Despite all our worries, things turned out ok for us in the long run and we don't regret our decision.
An fundamental thought to remember is that you need to make sure that the interest rate doesn't alter during the course of the loan. Of course, many lenders seem to offer deals that are too good to be true. Loans arranged for a long run fixed rate mortgage keep the same rate of interest throughout the entire life of the loan agreement. This has manifest benefits, especially for anyone who doesn't like surprises especially those associated with variable monthly mortgage repayments.
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.
However, after taking everything into consideration we chose a thirty year fixed mortgage rate instead. Because my wife desired to raise our child at home we couldn't be certain of her monthly financial contribution to our family spending. The problem we could see was the raised fiscal commitment with a higher monthly repayment if we had opted for the shorter fifteen year fixed rate mortgage. For us it just wasn't feasible as we would just be in over our heads and probably be worrying about money every month.
Discovering my wife was pregnant was the clincher, although this wasn't the only reason we reached this decision. Because my wife wanted to raise our child at home we couldn't be certain of her monthly fiscal contribution to our home expenditure. The problem we could see was the raised financial commitment with a higher monthly repayment if we had chosen for the shorter 15 year fixed rate mortgage. It was a case that we merely didn't want to get in too deep and cause troubles in the future.
We also found that we could lower the number of years left on the mortgage by making these odd payments. Although this takes some discipline, it is well worth it in the long run. Although we would have much preferred the loan for a fifteen fixed mortgage rate we had to take our needs and fiscal capabilities into consideration. Despite all our worries, things turned out ok for us in the long run and we don't regret our decision.
posted by Credit Counseling at
1:56 PM
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