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15 or 20 Year Term Length When Mortgage Refinancing?

The overwhelming majority of homeowners choose 30-year, fixed-rate mortgage refinancing for their new home loans in today’s economy; however, there are other options available. If your goal is to pay down your mortgage loan as quickly as possible choosing a shorter-term length of 15 or even 20 years will increase your monthly payment, but you will pay down the principle balance more quickly. According to Mortgage Loan.com Adjustable Rate Mortgages with shorter term-lengths are making a comeback.

Over 95 percent of all mortgages refinanced in the first quarter of 2011 were refinanced into fixed-rate mortgages, with homeowners increasingly turning to shorter-term loans. Over one-third of borrowers refinancing out of 30-year fixed-rate loans opted for 15- or 20-year fixed-rate loans for their new mortgage, according to figures released today by Freddie Mac.


If you’ve decided to go forward with your mortgage refi, you might forget to check fees with that great, low-interest rate you’re getting; however, it is the fees and closing costs that determine how good of a deal you’re getting for your mortgage refinance. The reason fees are so important, especially the loan origination fee is that you have to recoup these expenses before you realize any savings from your new, lower monthly payment. The loan origination fee, processing fee, rate lock fee, application fee, and mortgage yield spread premium are responsible for homeowners in the United States overpaying sixteen billion dollars this year according to the Secretary of Housing and Urban Development.

Avoiding unnecessary markup and junk fees on your mortgage refi is easier than you might think. You don’t have to have a mortgage broker as a relative to avoid common mortgage mistakes; for less than an hour of your time you’ll learn everything you need to get the best refinance rates without unnecessary fees by checking out my free Underground Mortgage Refinancing Videos.

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