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.

Ask Kate how to get the best mortgage rates
Ask Kate

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Comparing Fixed and Adjustable Rates - Refinancing? Buying a house? Get current rates right here.

Get the lowest payment with this best fixed rate mortgage plan yet pay it down quickly.

The 15 year fixed rate mortgage will save thousands 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 security with a lower interest rate.

I crown the 30 year fixed rate mortgage King Of Mortgages!

Meet the 40 Year Fixed Rate Mortgage when fast mortgage pay offs aren't your cup of tea.

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

Plan for changes to your adjustable rate mortgage.

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

Are interest only mortgage loans hidden adjustable rates?

Ask Kate About ARMs - Get an answer about mortgages that adjust.

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

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