Four years ago, we made the decision to refinance our mortgage. We hit the time when rates were about the lowest they’ve ever been, and decided to get into a 15-year mortgage. This would increase our payments but lower our total interest. It would also move forward our mortgage payoff date.
From a financial perspective, the move has been a big win so far.
The Benefits Of Our 15 Year Mortgage
- Low rate – We got a 3.375% rate, if memory serves, so we are paying very little in interest and more toward principle.
- Modestly higher payments – Our payments went up a bit from our previous 30-year mortgage
- Getting in line my payoff date objective – I’ve always said that in an ideal situation, the mortgage would be paid off before our kids started college. This timing would actually have the payoff occur during senior year of high school for our oldest. I’d be 52 which is a pretty good target age to be mortgage free, all things considered!