Payoff Your Mortgage Sooner

When it comes time to refinancing an existing mortgage it is important to understand the option to pay off the mortgage sooner. Many people who decide to refinance their home take advantage of this opportunity to shorten the mortgage loan term thereby pay less to the mortgage company over the entire duration of the loan. Although the savings of this refinancing option may not be immediate, they will benefit the borrower over the long term. If you are also concerned with the immediate financial benefit of refinancing your mortgage with a lower interest rate then you can rest assured. Nations Choice Mortgage has been named by the Wall Street Journal as the lending mortgage lender with the most competitive interest rates. We are here to help you and have the resources to make your next mortgage more affordable.

Finding the right mortgage program

With refinancing, different loan programs have different benefits and risks. Here are some popular options to consider:

  • The fixed rate mortgage option is the most common mortgage option to consider. With this type of loan, the interest rate applied to your loan does not change throughout the entire term of your loan.
  • Adjustable rate mortgages differ from the Fixed Rate Mortgage because the rates fluctuate within the term of your loan. The rates vary based on an index and so the rates could go up or down depending on several economic factors.
  • HARP or Home Affordable Refinancing program is a program ideal for those who have a Freddie Mac or Fannie Mae Loan and is more ideal for those who want to refinance their mortgage if they owe more money that the actual cost of the home.
  • Making Home Affordable is a fantastic program that offers assistance for US citizens to manage their loan strategies, avoid foreclosure and stabilize the loans for a more established home ownership. They have varied programs that you could take advantage of to easily payoff your mortgage sooner.

Set your mortgage goals

Goal setting is a crucial aspect if you want to pursue refinancing. Remember that refinancing your mortgage can be used as a restructuring tool. You still have your loans to pay for but with a much lower interest rate and other benefits like shorter loan terms. For most homeowners, that is the most appealing benefit of refinancing. You can stretch the payments to a 30 year terms so that monthly payments can be smaller. However, you can also go the other way and shorten the loan term. Maybe you opted for a 30 year mortgage in the past and that is because the interest rate was very high to pay for a 15-20 year term. Now that you have a lower interest rate, you can proceed to shrinking your payment terms to 20 years. This change may increase your monthly mortgage payment in the short term but you will have cut years off the length of the loan saving you thousands.

It seems counterintuitive to shorten the mortgage term instead of lengthening because your payments may increase slightly. But remember, paying the mortgage over a longer time frame does increase your overall cost. Refinancing can be perfect if you use is as a positive strategy for long term savings. While you pay more each month, you get to enjoy life, debt-free faster compared to those who opt for a 30 year term.

Pay off your mortgage soon considerations

There are certain considerations that you may want to evaluate before proceeding with this type of refinance option. Like any financial decision itís important to understand all of the factors and make sure that this option will benefit you best. Let us look at some important aspects:

  • Interest rates: The primary reason people choose to refinance is to lower interest rates. Homeowner can really experience significant differences in monthly payments from even slight changes in the interest rate. Make sure you know what your current interest rate is any how much you can save by changing to a lower rate.
  • Credit: You do not need to have excellent credit but it will help to have a good score without penalties. If you are planning to refinance within the next 5 years or so, be sure that you deduct as many loans as possible so you donít default on payments.
  • Equity: it is ideal that you build at least 10% of equity on the home before you consider this strategy, higher than most averages required by organizations like Fannie Mae ( they only require 5%). Building your equity at 10% or more is ideal since you can forget about issues like paying the difference of the equity.
  • Property value: If the value of the property goes down, and you have to refinance a large portion of the appraisal value, the mortgage amount might be greater than the amount that you borrow.
  • You can refinance if you have never been delinquent with your payments in the last 12 months. Lenders prefer homeowners that they can trust when it comes to payments. Thus, always be sure that you pay your loans consistently and you shall not have any issues getting your mortgage refinanced.

Payoff your mortgage sooner conclusion

While it is true that refinancing can be a great way to lower your rates and pay off your mortgage sooner, it takes some planning and research to find the right strategy to get a loan. There is a right time and set of conditions that you have to meet in order for you to get the most out of your refinancing options. The best strategy is to always go for the lower interest rate, and shorter payment term.

The good news is that consumers have more options today than ever before. With our mortgage recourses readably available online it is now possible for you to review and choose which mortgage programs best suites your needs. Now you can even search for current mortgage interest rates and begin the application process online today.

How to payoff your mortgage sooner:

If you are looking to payoff your mortgage sooner, Nations Choice Mortgage can help you begin the process. Nations Choice Mortgage has a well-trained team of mortgage specialists that are always available to help you make the best decision with your mortgage-related needs. We understand that choosing the right type of mortgage is a big decision and we are always here to help you make an informed choice.

To begin applying for a refinance loan, all you need to do is search rates and you will receive a personalized interest rate quote. You can then choose the type of loan and interest rate which fits your needs. Your mortgage application can also be completed online using our advanced online mortgage application. If you have questions anytime during the online application process, feel free to contact us and we will provide you with all the information you need.

Instant Mortgage Rate Help

Loan Amount: How much do you want to borrow? Example: 150,000 (You can borrow up to 100% of the purchase price of your home. You will find better interest rates at 95%, 90%, and 80% progressively.)

Property Value: This is the purchase price of your property or your best estimate of the appraised value of the property. Example: 175,000.

Loan Type: Selecting Refinance WITH CASH OUT may increase your rate. If you want some extra cash to pay the closing costs on your new loan, this would NOT be considered receiving extra cash.

Escrow/Impounds: Allows you to pay 1/12 of your annual property taxes and homeowners insurance with your mortgage payment each month. Escrowing your taxes and insurance will lower your points by .25%

Property State: Specify the State where the property is located

Property County: Specify the County where the property is located

Todays Rates: These rates are based on the following criteria..

Instant Mortgage Rates

Loan Amount
Property Value
Loan Type
Loan Purpose  
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