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Reverse mortgages pros and cons article
Fixed Rate Mortgages
Many couples buying a home are face with the question of whether to opt for a 15 or 30 year fixed mortgage rate. Most people that buy a home later in life want to have the mortgage paid off as soon as possible. Decisions of this nature need careful consideration before any commitment is made. Home buyers looking into this need to be assured their monthly payments will not increase.
If you are offered a deal that appears to be too good to be true than it probably is. A fixed rate mortgage maintains a set interest rate during the period of the loan. This is always a good thing for those people that don't like surprises. My wife and I had already decided to research long term fixed mortgage rates when we started looking at homes for reverse mortgages pros and cons sale.
Even though it was important for us to pay off our loan at the earliest possible opportunity, we didn't want high, unrealistic monthly payments which we would have trouble maintaining. As well as thinking about loans of 15 years, we also considered fixed rate mortgages that lasted 30 years as well. No-one likes the idea of having a mortgage when they are close to retirement, and we were no different, so it was still our hope that a 15 year fixed mortgage rate plan would still be an option. 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. Reaching the decision we did was the only one that made sense. Finding out my wife was reverse mortgages pros and cons having a baby made making the choice so much easier! Her regular monthly income would become unreliable because she wanted to be at home raising our child. Unfortunately, a higher monthly payment was the downside for loans with a 15 year fixed mortgage rate. We just simply didn't want to get in over our heads with a higher monthly payment. Despite the trepidation of having a longer term loan, it did reduce the repayments considerably.
If we have spare cash throughout the year then we can use it to reduce the capital sum. It is possible to take years off your loan if you can make a few extra payments during each year. This takes some discipline but it is well worth the effort it in the long term. Taking our needs and abilities into account was more important than our desire for a shorter term mortgage plan. All reverse mortgages pros and cons things considered, it all worked out for the best in the end.
Ben Morgais
For Free Impartial Advice on Choosing Your Ideal Mortgage that will Save You Money.
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