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  • Why You Should Consider Refinancing Into A Short Term Loan

    By: Nicole Gates

    Last week, the Fed announced that they plan on keeping rates low until 2015. And what that means for you is now is a great time to consider refinancing your current home loan!

    While previously, many homeowners opted to do a streamline refinancing, meaning they took a 30-year fixed into a 30-year fixed with a lower rate, now we’re beginning to see many homeowners refinancing into a shorter term mortgage, hoping to get rid of debt sooner.

    While you may experience an increase in your monthly payments by refinancing into a shorter term home loan, you may want to weigh that out with the other benefits that come with doing so, such as:

    1. Paying more towards your principal balance
    2. Building equity in your home faster
    3. Paying less in interest
    4. Locking in an even lower rate than with a longer loan term
    5. Owning your home faster

    Like with any mortgage decision, deciding if refinancing to a shorter term home loan is a personal decision based off your lifestyle and needs. To see how much you can save by refinancing to a shorter-term mortgage, check out our refinancing calculator. Or talk to one of our home loan experts who can help you decide which option is best for you. 

    Sep 17 2012