30-year mortgages are the most popular home loans because they generally come with lower monthly payments. But that also means you make more payments over a longer period of time. All those payments include money that goes toward interest.
Refinancing to a shorter 25-, 20- or 15-year loan will mean fewer payments, and less money paid toward interest, which can save thousands over the life of the loan. It’s also likely more of each monthly payment will go toward principle on your loan, rather than interest, which will help you build equity faster. Depending on market conditions and available rates at the time of your refinance, you may end up with a slightly higher monthly payment. But the savings over time can be significant. And paying less toward interest and more toward principle is like paying money to yourself.
If it’s not a good time to refinance, another option to pay off your loan sooner is to make regular, additional payments toward your principal. In addition to shortening the term of your loan, you’ll save money by making fewer payments over time, and reducing the amount of money you pay toward interest. You’ll build home equity a lot faster, too.
Contact a NOVA Loan Officer to find out how much you could save by refinancing to pay off your loan sooner.
The Program information shown is for informational/educational purposes only and does not represent a commitment to lend or extend credit. Other terms and conditions may apply. Contact your Loan Officer for more details.
