When to Refinance Your 30-Year Mortgage to 15 Years

There are times when it makes good sense to refinance a 30 year mortgage and convert it to a 15 year loan. Before you do this, though, you want to make sure that you will receive a financial benefit. By making this decision, you can quickly better your finances, in terms of your mortgage.

When Rates are Low

One of the best times to refinance your 30 year mortgage to 15 years is when rates are low. Compare your rates to the standard mortgage terms. If you already have a low rate, it may not do you any good to refinance. Keep in mind that 15 year rates are always lower than 30 year rates. So, if you purchased your home with a 30 year mortgage and then refinance to 15 years, there is a good chance that you will lower your rate and in turn pay less interest over the remainder of your loan.

Shorten the Length of your Mortgage

There may come a time in your life when you are anxious to quickly payoff your home. Rather than wait out the term of your mortgage, you can refinance to 15 years to speed up the process. If you think that it is time to refinance your 30 year mortgage to 15 years, consider your overall position and weigh it against the benefits of doing so.