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Heres what Aliche believes is the smart approach to paying off your mortgage early.
How Many Americans Have 30-Year Mortgages?
According to U.S. Census Bureau data, 61.2% of American homeowners have a mortgage in 2024.
The most recent available data reports that 89% of those mortgages are 30-year fixed mortgages.
Its a very common loan in American homebuying, but it saddles you with 30 years of debt.
Should You Refinance Into a 15-Year Mortgage?
Nobody wants to be in debt.
Aliche, however, says to resist the urge to refinance into a 15-year mortgage.
She noted, A shorter loan term means higher monthly payments.
If you hit a financial rough patch, will you still be able to manage those bigger payments?
If youre among that number, can you really afford to pay hundreds more every month on your mortgage?
Miss several payments, and youll risk defaulting on the loan and putting your home in foreclosure.
Finally, refinancing a mortgage can cost as much as 6% of the remaining loan balance.
For instance, 6% of $300,000 is an $18,000 refinancing cost.
That way, youll pay down your loan faster, without being locked into higher payments.
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