Consider United Northern Mortgage Bankers, Ltd. shorter-term refinance option. Check out our early payoff calculator to help determine the benefits and costs of changing the term of your existing loan.
Refinancing to a shorter-term mortgage allows you to reduce the number of years on your loan. Your monthly payments will likely be higher than keeping a longer-term mortgage, but you will likely reduce the overall cost of interest accumulated over the lifetime of your loan. A shorter duration mortgage loan will allow you to focus on other financial priorities such as saving for retirement or college tuition.
Choices To Repay Your Loan Faster
As a no-cost repayment option, once a year, you may send one extra loan payment. This extra payment will be applied to the principal of your loan, decrease your loan balance and therefore reduce the overall interest owed on your mortgage. This additional money can come from tax refunds, employment bonuses or gifted money.