There are many factors to consider before signing any papers
The decision to agree to a fixed rate mortgage is usually a safe bet providing you are happy with the monthly repayment right from the start. A large number of couples these days have decided to wait and are buying homes later but they also need to settle their mortgage early. Although before signing any documents, there is a great deal to consider.
One serious point is to ensure that the interest rate doesn't alter during the life of the loan. It is always wise to avoid arrangements that look to too good to be true because they invariably are. Although, loans based on a long run fixed rate mortgage maintain the same sum of money of interest throughout their life. There are no hidden surprises which is great for many individuals that want a regular monthly mortgage payment.
Both my wife and I decided to explore fixed rate mortgages when we began looking at homes for sale. Our aim was to pay of the mortgage as soon as we could without getting into financial trouble because of high monthly installments.
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.
After looking at the much lower sum we would be making on our regular payments with a thirty year fixed rate mortgage, there wasn't any alternative but to go with it. Fortunately, we are also able make supplemental installments throughout the year to make the principal shrink faster. We also found that we could lower the number of years left on the mortgage by making these odd payments.
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 payments which helps to lower the sum of money owed. By making just a few of these extra installments each year we learned that year's could be taken off the mortgage term. Although this isn't easy to achieve, in the long run it is well worth it. Under other circumstances, we would have preferred to have taken out a mortgage with a fifteen year fixed mortgage rate but we had to consider our other commitments as well. Despite all our concerns, things turned out well for us ultimately and we don't regret our decision.
One serious point is to ensure that the interest rate doesn't alter during the life of the loan. It is always wise to avoid arrangements that look to too good to be true because they invariably are. Although, loans based on a long run fixed rate mortgage maintain the same sum of money of interest throughout their life. There are no hidden surprises which is great for many individuals that want a regular monthly mortgage payment.
Both my wife and I decided to explore fixed rate mortgages when we began looking at homes for sale. Our aim was to pay of the mortgage as soon as we could without getting into financial trouble because of high monthly installments.
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.
After looking at the much lower sum we would be making on our regular payments with a thirty year fixed rate mortgage, there wasn't any alternative but to go with it. Fortunately, we are also able make supplemental installments throughout the year to make the principal shrink faster. We also found that we could lower the number of years left on the mortgage by making these odd payments.
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 payments which helps to lower the sum of money owed. By making just a few of these extra installments each year we learned that year's could be taken off the mortgage term. Although this isn't easy to achieve, in the long run it is well worth it. Under other circumstances, we would have preferred to have taken out a mortgage with a fifteen year fixed mortgage rate but we had to consider our other commitments as well. Despite all our concerns, things turned out well for us ultimately and we don't regret our decision.
posted by Debt Consolidation Loan at
9:45 AM
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