Last Updated on August 16th, 2022. Original: July 28th, 2022
With a 20-, 15-, or 10-year fixed refinance, you will have an increased monthly payment compared to the standard 30-year amortized loan. However, the shorter the term, the more money you will save on interest by paying off the loan years sooner. You'll also typically see lower interest rate options the shorter the term, saving you even more in the long run.
Some people think refinancing your mortgage is a second mortgage. It is not. When you refinance your mortgage, you payoff the old loan and replace it with another. The new loan will have a new interest rate and term.
If you're looking to refinance your mortgage, you may have essential questions to ask. How much will my monthly payment be? Will I get a better interest rate than I have now? What are the closing costs going to be? Is there a cash-out refinancing option? We’re here for anything you need to know about refinancing your mortgage.
A 10-year refinance loan will help you pay off your house much quicker and save the most on interest. However, it isn’t right for everyone. A+ Home Loans will help you determine if a reduced term makes sense for you and confirm that you can afford a higher monthly payment by evaluating your budget and overall financial situation.
The best way to compare the total cost of a 10-year refinance with a 30-year loan is to calculate the total amount of payments you'll make over the life of the loan. Even if you plan to pay off your house in 10 years, for you it might make more sense to take a 15 or 20 year payment that you can accelerate yourself without obligating yourself to the higher payment every month. That would save money but offer a safety net. If you are considering refinancing, A+ Home Loans will help you choose from various programs and compare the best rate vs cost options.
For all refinances, APHL can assist borrowers in accessing the lowest rates available. With record-high equity on most homes, contact A+ Home Loans for your Refinance Loan options.