Asked by hmeriwether00  |  Submitted July 07, 2016

How can one reduce their mortgage rate and not extend the life of the loan?

I am fifteen years into a 30-year mortgage and don't want to extend the length of time until I've paid it off.

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  Answers  |  4

July 07, 2016

I'd suggest looking at a 15-year fixed-rate mortgage, maybe even a 10-year fixed-rate mortgage.

$commenter.renderDisplayableName() | 09.26.17 @ 04:07

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July 09, 2016

Hi hmeriwether00.
Paul has given you a great suggestion on refinancing with a lower time frame.
Now, I would like to dive a bit deeper into your question. What is the current FMV (Fair Market Value) of the property? Also, add up those fifteen years of payments. Next, add up the payments on another 10-15 years. Will the total of all those payments be less than the FMV of the property after you have paid it off? We have met with quite a few folks who tell us they want another option.

Another direction is equity financing. Use another investment with a higher ROI than your current mortgage and pay off the mortgage from the proceeds. There are lots of choices here. You can set this up yourself or we can customize something for you. Always do what is in your best interest.

Feel free to follow up with us directly or to discuss your situation in greater detail. No obligation.

It's not what you make; it's what you keep that determines our lifestyle.

$commenter.renderDisplayableName() | 09.26.17 @ 04:07

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July 12, 2016

1) Consider a new 10-year fixed-rate mortgage or even a 15-year fixed at a lower rate than your present rate.

$commenter.renderDisplayableName() | 09.26.17 @ 04:07

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July 19, 2016

If refinancing is not an option you wish to pursue, you can change the effective rate by applying additional principal payments as you are far enough into the amortization schedule of your home loan to make significant reduction in overall payments. One simple technique would be to include an additional amount every payment. Another way to accelerate through the amortization schedule would be to make one lump sum payment to be applied to principal once a year. Good luck on achieving your mortgage-free home sooner than later.

$commenter.renderDisplayableName() | 09.26.17 @ 04:07

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