If you want to quickly build equity in your home and seriously reduce your interest payments, you should consider switching to a 15-year fixed rate mortgage. A 15-year fixed can help homeowners save over $100,000* over the life of their loan. It can also help you lock in today’s historically low rates and a mortgage payment that won’t go up.
What would be my new monthly payment after a refinancing to a 15 year fixed?
You can estimate your new payment using our 15 vs 30 year mortgage calculator. Nevertheless, your exact monthly payment depends on the interest rate you qualify for, the term you select, and other factors. Contact us to review your options and calculate your new payment.
Frequently Asked Questions
What are the advantages of a 15 year mortgage refinance?
- Pay less interest over the life of your loan, compared to a 30 year fixed
- Interest rates are usually lower than the 30 year mortgage rate
- Build equity and pay off your home loan more quickly
What are the disadvantages of a 15 year mortgage refinance?
- Higher monthly mortgage payments (as compared to 30 year mortgages)
- You’ll qualify for a smaller loan amount given a certain level of income
Comparing 15 year vs. 30 year mortgages
How does a 15-year mortgage reduce your total payments by over $100,000?* It’s easy: for the first 10 years of a 30-year mortgage, most of your monthly payment is going to interest, not principal. And the principal is what you need to pay off to own your home free and clear.
With a 15-year mortgage, you’re paying much more in principal every month, making a significant dent in your total loan amount. And if your 30-year interest rate is high, refinancing might mean that your 15-year monthly payment is about the same. Imagine paying off your house faster, with less interest, at about the same monthly mortgage payment!
* Savings example: Take a $300,000 loan on a basic single family home with a 75% LTV ratio. As of 8/3/2017, the 30-year fixed rate is 3.875% and 15-year rate is 3.125%. The 30-year monthly payment is $1,411, which multiplied by 360 totals $507,960. The 15 year payment is $2,108, which multiplied by 180 totals $379,440. So total savings are $128,520! See newfi.com/2017/06/15-year-mortgage-refinance-advantages/ for further details, or use our 15 year vs. 30 year mortgage calculator to enter your own details.
How to switch to a 15 year fixed
Newfi Lending’s team of mortgage specialists can show you exactly how much you can save by refinancing to a 15-year fixed. We’ll work with you to understand your situation and review your options. 15-year rates may not stay this low for much longer, so now’s the time to check your eligibility. Give us a call at (888) 316-3934 and see just how friendly we are!