If you find you have extra money in your monthly budget, consider shortening the term of your mortgage loan through a refinance.
A shorter loan length will often have a lower interest rate, meaning you’ll pay less money in overall interest.
However, a short loan length will have a higher monthly payment because you are paying the same amount over a shorter time period.
For example, a 15-year mortgage will have a lower interest rate than a 30-year mortgage but higher payments due each month in those 15 years.
Information provided by MSU Federal Credit Union .