RE: LeoThread 2025-04-09 13:31

Part 6/8:

Step 5: Lower the Mortgage Term When Remortgaging

When it’s time to refinance, many automatically revert to their original loan term of 20-25 years. However, if your financial circumstances allow for it, consider shortening the term to 15 or even 10 years. While this can lead to higher monthly payments, it lowers the overall interest significantly over time.

Step 6: Simulate a Shorter Term

If you prefer to maintain flexibility, you can simulate the effects of a shorter mortgage term without committing to one. By taking out a mortgage under the original 20-year term but making payments equivalent to what you would have paid on a 15 or 10-year term, you preserve your ability to adjust payments if financial circumstances change.

Step 7: Borrow Responsibly