Mortgage Hack #9
Refinancing to a shorter-term mortgage involves replacing an existing 30-year mortgage with a 15-year mortgage. This strategy allows borrowers who can afford higher monthly payments to pay off their mortgage faster. With a shorter repayment period, the monthly payments are higher, but the borrower benefits from substantial interest savings over the life of the loan. Building equity in the home also occurs more rapidly. However, borrowers should consider their financial situation and long-term plans before deciding on this option. Refinancing comes with closing costs and fees, which should be factored into the decision-making process to ensure overall financial benefit.
Reference: 2022 Keller Mortgage LLC
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