If you’ve been living in your home for a few years, you should consider these top three reasons you should refinance your loan to a short-term mortgage.

1. Reduce interest paid. You may already have a great rate on a 30-year mortgage. But you’re paying interest for every month of those 30 years…and that adds up to tens of thousands of dollars in the long run. For example, if you have a $250,000 mortgage for a 30-year term at 3.625% you will pay more than $160,000 in interest charges over the life of the loan. However, if you refinance that $250,000 to a Goldenwest Credit Union 10-year at 3.74%, you will pay just over $50,000 in interest charges at the shorter term. Even if your monthly payments go up slightly, you will save significant money over the life of the loan.

2. Build equity faster. Reducing the term of your mortgage will actually allocate more of your monthly payment towards the principle balance of your home loan. With more equity, you can tap better qualify for a credit line should you need one. Plus, a larger portion of equity in your home puts you in a better position to sell your home when the time comes.

3. Pay off your home sooner. Part of the American Dream is to own your home free and clear. Paying-off your mortgage gives you freedom to place your hard-earned dollars in other investments and enjoy retirement. With a 5-, 7- or 10-year mortgage, paying off your home loan is in the not-too-distant future.

Goldenwest offers short-term mortgages at competitive rates with various terms to help you strategically pay-off your mortgage. Many of our short-term mortgage options feature no fees or closing costs with payments will be serviced through Goldenwest.