When interest rates fell earlier this year, Barbara Forant wanted to refinance the mortgage on her Lowell condo to lower the rate and pay it off sooner. But she couldn’t find a lender willing to refinance a balance of just $63,000 and shorten the term from the remaining 15 years.
Then her financial adviser suggested a customized mortgage that lets homeowners choose the length of time for repayment, rather than standard terms of 10, 15, 20, and 30 years. In just over a month, Forant was the proud borrower on an 11-year mortgage at 3.99 percent, substantially lower than the 5.75 percent she had been paying.
Comments
Just moved to an 8 year mortgage @ 3.5% no points that took only 6 weeks from application to close. Can use the savings to pay off in six years. I'm a fan!