Save Money Refinancing

by Marenda
(Greenfield, Indiana)

Ask Kate: Save Money Refinancing Kate, This is about how we saved $9,000 refinancing without really trying. We refinanced our home several years ago. We had a 30 year fixed loan and we refinanced to make our loan a 15 year loan that would increase our monthly payment by only $15 a month but on the long term of the loan it would save us $9,000 in interest.

This in addition to the fact that our loan would be paid off 15 years earlier was a win win situation for us.

It did cost us $300 for the fees charged by the finance company but it was well worth the savings our family gained.

Then a few years later we refinanced again. This time we were able to save another $3,000 in interest and shaved another 5 years from the life of our loan. We did a 1/2 a payment every other week. The effect this had was that we were making one extra payment per year. That extra payment was put directly on the principal none of it went towards interest.

Well the result was that we paid our home off before we reached the age of 50 when we were just 49 and it felt so very good to have our home paid for. It's always important to remember that the longer you borrow the money the more it will cost you in interest.

Kate Answers: Save Money Refinancing

Dear Marenda,

Thanks for sharing with other readers. A 15 year fixed rate mortgage is a great way to save money and pay off your mortgage fast.

For those who do not feel they can afford the extra payments, here is a tip, the best fixed rate mortgage alternative.




P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.

Riveting Fixed Rate, Hybrid and Adjustable Rate Mortgage Help

Assure yourself of the lowest fixed payment possible with this best fixed rate mortgage yet pay it down as quickly as you like.

The 15 year fixed rate mortgage will save you thousands and thousands of dollars in interest over the years. Plus you'll be mortgage free after 180 payments!

What would you do with an extra $87,789? Meet the 20 year fixed rate mortgage.

Introducing the 25 year fixed rate mortgage combining the security of a 30 year fixed home loan enhanced by a slightly lower interest rate.

I've heard it referred to as boring but I crown the 30 year fixed rate mortgage King Of Mortgages!

The 40 Year Fixed Rate Mortgage - When fast mortgage pay offs may not be for everyone.

Are adjustable mortgage rates good or bad? It all depends on your circumstances.

Imagine what it would be like if you could plan for changes to your adjustable rate mortgage.

If the cheapest fixed rate mortgages will save you money, why pay for more?

Come on Kate! Aren't interest only mortgage loans just hidden adjustable rates?

Ask Kate About ARMs - Ask a question to get an answer from Kate about mortgages that adjust.

ARM Ask And Answer - Questions about adjustable rate mortgages, each with a individual answer from Kate

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