Q.  I am thinking of refinancing my home to take advantage of lower interest rates but I want to shorten the mortgage loan length. What are my options?

A.  Refinancing a 30-year mortgage doesn't necessarily require that you commit to paying for another 30 years. You can substantially shorten your repayment period by paying just a little extra each month or each year.

            For example, let's look at a $150,000 loan made at 7 percent interest. A

30-year amortization will give you a monthly payment of $997.95, and you will pay $209,263 in interest over the term of the loan. However, if you increase your payment about $165 per month (to $1,162.95), you can pay off your loan in

20 years, and you'll pay $129,108 in interest over the term of the loan - an interest savings of over $80,105 (money that could be invested).  Increase your payment to $1,348.24 (just another $185 per month) and you'll pay off the very same loan in just 15 years, with accumulated interest paid of $92,684 - an interest savings of another $36,424.  

      You may want to search out lending institutions that have special interest saver programs. If you agree to an early repayment schedule you are also more likely to qualify for refinancing. Try going for a 30-year mortgage and set up your amortization schedule for 26 years (An amortization schedule is a list of regular equal payments that will pay off your debt in a specified period.).

      If you make the decision to add to your payments so you can pay off your mortgage by a specific date, it's a wise idea to check with your mortgage servicing company to find out if you are paying the correct extra amount. Also, make sure there are no prepayment penalties in your note. If you are thinking of selling or buying soon, and require competent and caring representation, please call me at 505-924-1031.

However, If you think this is good, I've got something even better.....Itr is called a Money Merge Account. Ask Me!!!!!!!!!!!!!