Hello,
When rates become as low as they are right now - it makes a lot of sense for you to consider lowering the term of your loan.
...For instance, if your current rate on a 30 yr fixed loan is 6.00% or higher - you should consider refinancing to a 15 year term.
Here's why:
1) Your rate would drop by around 1.5% (fixed).
2) For every $100,000 financed - your payment would be $167 higher for the 15 yr. However...
3) For that $167 monthly difference per $100,000 financed - you would save $78,139 in interest by getting rid of the last 15 years of the 30 yr loan.
Reducing your debt is smart.
...Right now is a good time to implement a move like this - because rates are so low.
I hope you have a good day today. Thanks for reading!
Brett
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