I've been looking into refinancing my mortgage to cut down the years left on it. From what I gather, first step is checking current rates, then comparing lenders, and finally crunching numbers to see if the monthly payments are doable. Um, anyone got better tips or shortcuts?
Have you considered just making extra payments instead of refinancing? I'm pretty new to this myself, but when I was researching mortgages, a friend mentioned that refinancing can sometimes come with hidden fees or closing costs that eat into your savings. If your current rate isn't too bad, maybe just throwing a bit extra toward the principal each month could shorten your loan without the hassle of refinancing. Plus, you'd have more flexibility—if money gets tight one month, you're not locked into higher payments. Just something to think about...have you run the numbers on that yet?
You're definitely onto something there. Refinancing can look appealing at first glance, but those closing costs and fees can really sneak up on you. When I was in a similar spot, I ran the numbers and realized that just bumping up my monthly payments—even by a little—made a surprising difference over time. Plus, like you said, it gives you breathing room if things get tight. Worth crunching the numbers yourself before diving into refinancing, for sure.
I went through something similar a couple years back. Refinancing looked tempting, but after factoring in closing costs, it didn't seem worth it for my situation. Instead, I started making bi-weekly payments—basically splitting my monthly payment in half and paying every two weeks. It sounds minor, but it actually shaved off a few years from my mortgage without the hassle of refinancing. Might be something to consider if you're crunching numbers anyway...
Refinancing can work, but honestly, the bi-weekly payment thing mentioned above is pretty solid advice. Also, watch out for lenders pushing "no-cost" refinancing—usually means higher rates hidden somewhere. Always run your own numbers carefully before committing.
