My wife and I have another 28 years left on our 30 year mortgage. Paying that mortgage takes every nickel we have, so we can't afford to refinance with a shorter term, and we can't afford to pay more toward the principal every month. But we're both in our forties and would like to be ready to retire in about 20 years. Retiring will be impossible with a mortgage over our heads. What can we do?
The good thing is that you have several options available to you. What might be the best option for you would be to look into refinancing into an Adjustable Rate Mortgage. These come in many flavors but getting into a 7/1 ARM or 5/1 ARM should give you a rate much lower than that of a 30 year mortgage.
What does 7/1 or 5/1 mean? It means that you get the intial (much lower rate) for the first 5 years (in a 5/1 ARM) then your rate will adjust every year after that. The good news is that you can refinance along the way if you need to.
The first thing that you should do is talk to your mortgage rep and they will be able to give you your options.
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