Pay Off Your Mortgage 5 Years Sooner To Save Even More

It’s amazing just how much lenders rates have dropped and how you can tweak a refinance to save tens of thousands more than anyone else in Stratford.

It’s exciting for all those homeowners here in Stratford to be able to refinancetheir mortgage rates at a lower rate. Here’s the kicker though, I don’t want you to refinance just to get a lower monthly payment.

OK, that’s not entirely true. There are two circumstance that should be refinanced. If you are still in an adjustable rate mortgage you should refinance or if you are having cash flow problems and saving a couple hundred dollars a month will help than you should refinance. Otherwise I want you to think about refinancing in a completely different way.

How I Think You Should Think About Refinancing

As you already know I like to go about things a little differently. I like the common sense approach to lending over the emotional approaching to lending.

Consider this. Instead of trying to decrease your monthly payment try to decrease the length of your loan.

Let’s use an example. Lets say you have 25 years left on your mortgage and are currently paying an interest rate of 6%. If you can refinance into a 20 year loan at a very possible 5.2% in today interest rate climate than you will save $175,000 in interest by refinancing.

You’ll pay off your mortgage five years sooner and save $175,000 in interest payments without changing your monthly payment. Sounds good to me.

Do you have any ideas like this that are not quite as main stream in regards to refinancing? I’d love to hear them so I could share them with my subscribers. Leave us a comment below to share your ideas.