If you’re considering mortgage refinancing to take advantage of today’s low refinance rates you might want to consider a shorter term length as part of the process. Refinancing with a 15-year term length will raise your monthly payments; however, the savings you’ll get over a 30-year loan could easily justify paying more. Here’s an article from the New York Times exploring the pros and cons of refinancing your home with a 15-year term length.
Fifteen-year mortgage rates certainly look enticing these days, and the idea of owning a home, debt-free, in less time than it takes to raise a child, sounds grand. So what’s the catch?
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Once you’ve decided to go forward with your mortgage refinance regardless of the term-length you choose it’s important to take a close look at the fees you’ll be paying for the new loan. The more you pay closing on your new home loan the longer it’s going to take to break even recouping your expenses. All of the fees you pay including the broker’s loan origination fee are negotiable and can be whittled away with some good old-fashioned haggling.
You can learn more about getting today’s best refinance rates without paying unnecessary fees by checking out my free Underground Mortgage Videos.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
