Opinion: The low rates present a terrific opportunity for homeowners with 30 year fixed mortgages to possibly save thousands of dollars in interest by refinancing into a 15 year mortgage with little or no impact on their monthly payment. Borrowers can use a mortgage calculator to determine what their payment would be at the current rate (available on many websites including ours). The comparison to their current payment will indicate if they can make the change with a similar monthly payment. A 15 year mortgage means that more of the monthly payment will be used to pay down the principal balance, resulting in a significant savings in interest. – Marilyn J. Richardson, President & CEO
More Homeowners Shorten Mortgage Terms
USA Today (08/16/11) Block, Sandra FULL ARTICLE
More U.S. homeowners are shortening the terms of their mortgages, prompted by low interest rates and a desire to resolve debt. In the first three months of the year, Freddie Mac reports that 34 percent of refinancers switched to a 15- or 20-year loan, the highest level of borrowers to do so in seven years. At LendingTree.com, meanwhile, requests for 15-year mortgages are up 30 percent from a year earlier.