Don’t Let Poor Credit Mortgages Take Advantage Of You
Saturday, September 6th, 2008 Subscribe To Our Feed
There is always a debate when home buyers have to decide on the merits of 15 or 30 year fixed mortgage rates. Most people that buy a home later in life want to have the mortgage paid off as soon as possible. It is important to be careful of poor credit mortgages that take advantage of the consumer. Before signing and documents, there are always many points to think about. A homeowner should pursue, wherever possible, a mortgage with a guaranteed interest rate.
It is always wise to avoid agreements that do not appear to have any negative aspects because they invariably have but are hidden. Interest rates remain the same throughout the life of the loan for 15 year fixed rate mortgages. There are no hidden costs involved with this type of plan which is great for many people that want a regular monthly payment. When my wife and I were looking at homes for sale we decided to check out the various loans available with 15 year fixed mortgage rates.
The plan was to pay off the house as soon as possible but we did not want to be burdened with high monthly payments. This meant we had to consider 30 year fixed rate mortgage plans as well as those of 15 years. Because we did not want to have a mortgage close to retirement, we hoped we would be able to afford a shorter 15 year fixed rate mortgage. It was not easy for us because of the stress to pay the house off early.
Taking everything into account we finally went for the easier 30 year mortgage plan instead. There were many things that factored into this decision.Discovering my wife was having a baby was the most important reason. Because she wanted to be at home for our child, her income would not only be uncertain but also irregular. The financial commitment per month on the 15 year fixed mortgage rate was just too high. 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.
During the year we can make additional payments which helps to reduce the amount owed. My making just a few of these payments each year we discovered that a number of years could be taken off the mortgage term. It may be easier said than done, but this approach does pay off eventually. We would have much preferred to have taken out a loan with a 15 year fixed mortgage rate but we had to consider our other commitments as well. As it is, things worked out very well for us by taking this route.
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