Is it worth shortening my loan term?
Q: I can shorten the term of my loan by 12 years and lower my interest rate by two percentage points. My monthly payment will rise by $300, and the closing costs will run about $3,000. Is it worth it to refinance?
A: It goes without saying that you'll save a bundle of interest cost by killing off those 12 years of mortgage payments, and you'll more than recover your $3,000 over time. However, before you commit to that sizable increase in monthly payment, you'll want to make sure that other facets of your financial life are well managed. This includes paying off high-rate credit cards, getting life insurance in place, funding retirement and education accounts and more. If that $300 per month can be put to better or more broad use, you may wish to consider a somewhat longer mortgage term, which would put less of a commitment on your cash flow.
More help from HSH.com
7 reasons to refinance nowFalling rates bring new chances for homeowners to refinance, while also allowing potential homebuyers to qualify for larger mortgage loans without increasing their monthly payment.
12 essential tax questions for homeownersKnowing the answers to these 12 critical tax questions will help homeowners keep their tax bill as low as possible.
Mortgage Rates Radar 02/09/2016: Fixed Rates Fall to April 2015 LevelsHSH.com releases its latest Weekly Mortgage Rates Radar showing that the 2016 downturn for mortgage rates continues unabated, as financial market turbulence and slow economic growth continue to drive rates downward. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM).
12 ways to get the lowest mortgage refinance ratesTo get the lowest mortgage refinance rates, first prepare your finances and then shop for interest rates with certain strategies in mind. Here are 12 ways to ensure you lock in the lowest refinance rate possible.
How to avoid a VA foreclosureIf you're in a VA mortgage and finding it increasingly difficult (or impossible) to make your mortgage payments, you'll need to take action if you want to keep your home from falling into foreclosure.