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| Our aim was to pay of the mortgage as soon as we could |
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| Written by Rem |
| Thursday, 22 January 2009 15:54 |
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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. It became manifest that we had to look at fixed rate mortgages over a extended period and not just fifteen year fixed mortgage rate programs. We didn't really like the idea of having a mortgage as we drew close to the age of retiring so we were really hoping to get one of the loans with a shorter fifteen year fixed rate mortgage. There was obviously very good reasons to finish paying the mortgage off earlier if at all possible. 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. 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. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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