Question:
“I’d like to refinance, but I’ve had my loan 18 years and have got myself in a position where I only have 12 years to pay it off. I don’t want to blow that and start over with a 30 year loan.”
Answer:
I hear this a lot!
And with some math or going to a mortgage calculator website, you can refinance AND still pay off your new loan in 12 years.
You see, there’s nothing magical about having a loan several years.
If you refi to a loan that would pay off later than your current mortgage (e.g. 30 years vs. 12 years), your monthly payment will go down (assuming your new rate is equal or lower).
But if you simply pay more per month, it will pay off sooner.
The challenge is how to figure out how much more per month will pay off your mortgage how much sooner. Here’s a site I found that makes that easy.
So go refi and get that lower rate. Since you’re getting a lower rate, you could pay your mortgage off even sooner by paying what you’re paying now.
If you don’t believe me, plug the numbers into the website’s calculator.
Good luck. And if you need a good lender to refinance, give me a call. I know a great one.
