| Interest rates on mortgage loans are at historic lows | | | | a lot of money by accelerating the principal pay down |
| so people across the country are refinancing to take | | | | on your mortgage. That is, more of your monthly |
| advantage of the lower rates. But are they maximizing | | | | payment will go toward paying down the principle |
| the opportunity? | | | | balance of the loan and less of the payment will go to |
| Most of us associate a mortgage loan with a 30 year | | | | interest. If you are refinancing from a higher rate down |
| term. However, with the opportunity that has been | | | | to a much lower rate on a fifteen year mortgage, |
| presented with the low interest rates available, a 15 | | | | although your payment might be a little bit higher on a |
| year mortgage refinance is the best option in most | | | | 15 year mtg. versus a 30 year mtg., the savings over |
| cases. This option allows you to take maximum | | | | the life of the loan will be immense. So if you can |
| advantage of the super low low rates. | | | | afford the payment difference, your savings will be |
| Get a Lower Rate | | | | well worth the extra effort. In many cases, if you |
| When you refinance to a shorter term, not only are | | | | factor in the lower rates available today, you may |
| you taking advantage of the historic low rates but you | | | | actually be able to do a fifteen year mortgage |
| are capitalizing on the fact that lenders will give you a | | | | refinance with little to no increase in your current |
| better interest rate than on a 30 year mortgage. This | | | | payment. |
| rate reduction is typically about 1/2% to 5/8ths% which | | | | Imagine how much money you will save by paying off |
| amounts to a lot of interest savings over the life of a | | | | your mortgage 5, 10, or 15 years sooner. An average |
| loan. | | | | borrower pays about $20,000 per year on their |
| Save Money | | | | mortgage. By reducing the term of your loan, you can |
| By doing a 15 year mortgage refinance, you will save | | | | save well over $100,000 over the life of your loan. |