While most people who took out mortgages during the financial crisis
got hit with high interest rates, an increasing number of these borrowers are now
looking to refinance into lower-rate mortgages to save money, the New
York Times reported. But for borrowers who may not want to start over
with a 30-year loan, the solution might be to refinance into a 20-year
loan. Rates on these mortgages are low enough that someone in the
third year of a 30-year loan can shave years off the payment term
without increasing the monthly payment much, if at all. By switching
to a 20-year loan, borrowers would be able to pay off their mortgages
sooner, while saving thousands of dollars in interest payments. [NYT]