Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

Written by: Carrie Reeder

Saving money with lower rates isn't the only reason to refinance. Opting for a shorter loan can also save thousands in interest and free up income in the future. A short term loan can also help you pay down your principal quicker.

Better Rates

A 15 year mortgage has a better rate than a 30 year mortgage offered the same day - usually by a quarter of a percent. However, even if rates are the same as your current mortgage, refinancing to a shorter mortgage can save you thousands in interest by paying off the principal sooner. Your monthly payments will be slightly larger, but that is because a larger portion of the balance is being paid.

Offers Self-Discipline

Short term loans make your decision to pay off your mortgage official. For those that have a hard time making extra payments on their mortgage, a short term mortgage may be the answer.

It is helpful to first look at your long term financial goals. Perhaps you are planning to pay for kids' college tuition, to retire, or to reduce your debt load in the future. Decide when you want your mortgage paid off and look at the monthly payments. You can choose a number of periods - 15, 20 or 25 year home loans.

Factors To Consider

Low rates aren't the only factor to consider when deciding to refinance, the payment period is also important. By simply making larger principal payments, you get rid of your loan sooner and save money on interest payments. Additionally, reducing your debt level by paying off your mortgage also improves your credit and financial situation.

However, you should also remember the immediate impact of a short term mortgage. A larger monthly payment can put a strain on your monthly budget. You may also find that if you plan to sell your home within a couple of years, you will not recoup the cost of refinancing fees.

You are also limiting your financial flexibility. You are committing yourself to a larger principal payment. You could choose to simply pay down the principal when you have the available cash.

In the end, short term mortgages do have their benefits and should be considered when you plan to refinance.

About the author:

View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.


Other Related Articles:

Employ Bridging Loans for short term financial gaps
Each one of us may face financial crisis in our life. I too have faced. I always wanted to own a home with a big beautiful garden. I had been looking for it for a long time and one day I found it. However, there was one problem, I would say a...read more

Meeting a Financial Need With A Payday Loan
You may be in the position where it may be impossible to see how you can possibly make it through a financial problem; this is why many people are very grateful to the Payday Loan Companies. This type of short-term loan can be extremely...read more

1% Mortgage Loans... What's The Catch?
While there are several different types of 1% mortgage loans, there are really only two major keys to winning with a 1% mortgage loan. The first key is to make sure the loan is set up correctly from the beginning. And the second is to...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map