15-Year Fixed Rate Refinance Still a Great Deal for Those in 30-Year Mortgages

I’ve touched on this topic before, but again want to reiterate that refinancing into a 15-Year mortgage can be a great deal for those currently in 30-Year mortgages. 15-year refinance mortgage rates are still in awesome shape, but may not be this low for too much longer. The key is that the spread between current 15-year and 30-year mortgage rates has widened over the past several months, making the 15-year interest rates extremely attractive for those with a loan timeframe of 5 years or more.

Refinancing into a 15-year fixed rate mortgage will benefit those that can comfortably handle the payment of course, but it may not be as high as you think. Lets go over an example so you can see what I’m rambling about.

Say Mr. Borrower is refinancing out of a 30-year fixed mortgage into a 15-year fixed rate home loan. He took out his original mortgage 4 years ago for $190,000 at 6.5%. His mortgage is paid down to $180,000 and he is refinancing a $180,000 loan amount into a 15-year fixed rate loan at 4.25% with no lender fee.

Mr. Borrower’s current principle and interest (P&I) monthly payment is $1,201 and after refinancing into the 15-year fixed, his monthly P&I will be $1,354. So, the monthly payment only increases $153.

The benefits for paying an additional $153 per month are quite astounding.

First, his loan term will be reduced by 11 years. (26 years remaining on current loan minus the 15-year new loan term).

Secondly, he will be saving a net total of $130,338 in interest over the term of his new mortgage. (26 years remaining on current mortgage results in $194,076 remaining interest to be paid. Total interest to be paid for 15-year loan is $63,738. $194,076 minus $63,738 equals total savings of $130,338).

Thirdly, Mr. Borrower will not be taxed on that $130,338 in savings (profit).

For those with a long-term timeframe and financially in the position to take advantage of the current 15-year refinance mortgage rates, this is really a fantastic opportunity while the interest rates last.

If you are considering a home mortgage refinance now and need some help, have questions, or need some competitive refinance rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.

May the Mortgage Refinance Rates be with You!

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