Home Refinancing: Increasing vs. Decreasing Your Mortgage Term
When it comes to home refinancing, homeowners generally have two options—changing the rate or the term of their mortgage (or both). One isn't necessarily better than the other, as the benefits and advantages will depend on the borrower's goal and current financial standing.
For example, if you extend your mortgage term, you should be able to lower your monthly payment. However, you may pay so much interest over the longer term that you may decide it’s not worth it.
On the other hand, if you shorten your mortgage term your monthly payment may be higher, but knowing your loan will be paid off sooner may be worth a little belt-tightening.
For more on home refinancing and how we can find the right solution for you, contact us at 954-745-2400; we'll be glad to help.