How To Lower Your Mortgage Years

This process involves extending your mortgage term.

How to lower your mortgage years. But if you make the same payment you may be able to cut years off your mortgage and save thousands of dollars in interest. To do this it is necessary to examine your current financial situation to generate a picture of your finances. As of 2014 mortgage rates continue to be relatively low meaning refinancing your mortgage to a new lower rate could help you pay your mortgage off sooner as well. I o mortgages are a temporary way to lower your mortgage payments and can work out as long as you plan to increase your payments after the.

Typically 20 year rates can be anywhere from one eighth to a quarter percent lower. Your interest rate will rise. For example if you have 25 years left on a mortgage with a 5 interest rate you will benefit by refinancing to a new 30 year loan at a 4 25 interest rate. Let s say you re financing a.

If you have a 30 year mortgage and spend the first five years paying only interest your monthly payment may seem pretty low but you must pay off the rest of your mortgage in the remaining 25 years. First most 20 year mortgages carry slightly lower rates than 30 year terms. You can extend it back to a 30 year fixed rate mortgage and since your loan balance is smaller than it was originally your payment will be lower. You can also refinance to get a lower interest rate.

You can still choose to make additional payments on the mortgage as if you were paying a 15 to 20 year loan. Extend your mortgage into a conventional 30 year term to cut your monthly payment. Refinance your mortgage from a 30 year loan to a 15 year loan. You may be able to extend your mortgage loan to a 40 year term as well this would lower your mortgage payment significantly.

You can also refinance to shorter term loans 10 or 15 to pay the balance off faster but that will likely increase your payment.