Shortening the Term of Your Loan Will Pay Off Your Mortgage Faster and Save You Thousands!
Many people understand the benefit of refinancing to get a lower interest rate and monthly payments. There are other ways to save money on a refinance that you may have not considered. By shortening the term of the loan (length of time to pay it off), a tremendous saving can be obtained. And, depending upon the circumstances, you may be able to save money on the monthly payment as well. For example, let’s assume your current mortgage will be paid off in 20 years, and you do not want to start the clock again on a refinance for a 30-year loan. An excellent way to decrease the cost of the loan is to take a 15-year loan. Saving 5 years to pay off your loan (compared to the loan you are paying off) provides tremendous savings. In addition, from the start, payments towards principle are much higher, thus saving you money even if you pay off your loan through a sale or another refinance in 5-10 years. Elite Financial can customize your loan term, in most instances, from 8-29 years. Although we have fixed rates, for example, on a fixed rate based upon 10, 15, 20, 25, and 30 years, each of these have lower rates, with the 10-year fixed being the lowest. In addition to changing the term, we also suggest making an extra payment per year, especially on a 30 year loan. This extra payment in itself will decrease your loan term to approximately 22-23 years. You deserve to pay as little to the mortgage company as possible, and using these simple guidelines can save you up to tens of thousands of dollars during the term of your loan. This is just another way Elite Financial tries to help borrowers save as much money as possible on the mortgage loans we provide. See how much money you could save. Click here to Contact Elite Financial today.
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Loans are subject to credit and property approval. Availability of programs is subject to change without notice.