Debt Consolidation Credit Counseling In Phoenix

With fixed rate mortgage, considering whether you need a 30 or 15 year, fixed mortgage rate is important for people looking to buy a home and concerned about their monthly payments. Buying a home later in life means that many people want to have the mortgage paid off early. In a situation as important as this, time needs to be spent considering all the available options. Probably the most important point is a guarantee of a constant interest rate for the duration of the loan.

If you are offered a deal that appears to be too good to be true than it probably is. Interest rates remain the same throughout the life of the loan for 15 year fixed rate mortgages. For many people with regular incomes, this is a definite benefit as there are no hidden charges. My wife and I had already decided to research long term fixed mortgage rates when we started looking at homes for sale.

Having a realistic, sustainable monthly payment on our mortgage was important even though we wanted to pay off our debt as soon as possible. This meant we had to consider 30 year fixed rate mortgage plans as well as those of 15 years. Still, having a mortgage close to retirement was not what we were looking for, so we decided to try for a loan with a 15 year fixed mortgage. We were worried about the emphasis placed on early completion of the mortgage.

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 problem we could see was the increased financial commitment on a monthly basis if we had opted for the 15 year fixed mortgage rate. We just simply did not want to get in over our heads with a higher monthly payment. The monthly payments on a 30 year loan were quite a bit lower.

Being able to make additional lump sum payments during the year means the outstanding loan reduces faster. Those few extra payments also help reduce the number of years you have to pay the loan over. This is well worth it in the long term but it does require some discipline. 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. All things considered, it all worked out for the best in the end.