I have to tell people sometimes that it just doesn’t make sense to refinance. The drop in rate isn’t significant enough to warrant the costs of the refinance.
You need to do the math (or we can do it for you). If the interest savings isn’t enough to offset the cost, then don’t refinance.
…but, what do these people do when they want to refinance to reduce the number of years on their mortgage?
One simple thing you can do is simply pay more each month on your current payment.
I’ll give you an example…
On a $100,000 30 year mortgage – if you just add $120 to your payment every month you will pay your mortgage off in 20 years.
…If you add $250 to your payment on a $100,000 30 year mortgage you would pay the mortgage off in 15 years.
Easy right!
That’s it for today!
…by the way if you know of someone needing to be prequalified for a mortgage loan – I appreciate your referrals!
Thanks for reading! …and, have a great day!
Brett