Jellyfish Cupcakes Blog

When mortgage refinance rates are as low as they are currently, one may want to consider refinancing their home loan in an effort to reduce the overall term on their mortgage.  It’s smart, and can save multiple thousands of dollars in interest over the term of the home loan.

There are two ways to accomplish a mortgage term reduction.  The first way is to simply refinance into the shorter-term loan at a much lower interest rate.  The second way to reduce your term with a refinance home loan is to actually take out a mortgage with a longer term than your current and use those monthly savings to pre-pay the principle balance.  This is a good approach for those that are responsible enough to apply the savings back into repayment of the home loan.