@2 Huskies - It depends on what your interest rate is on your 30 year mortgage and what you can get for a 15 year mortgage as well as other factors (is this your forever home, how much time is left on your mortgage etc) - You might be better off applying extra money towards your principal instead of refinancing. However, my biggest comment is that you should read the comments USAA members have posted about obtaining mortgages with USAA if you do decide to refinance. Based on our family's personal experience, we would never do another mortgage with USAA - they were disorganized, missed our closing date, and in general just could not get their act together. It was the worse mortgage experience we have ever had. They then outsourced the servicing of the mortgage to Nationstar who then did not report our mortgage payments to the credit bureaus for approximately 6 months (we were not the only members affected by this). This of course affected everyone's credit scores and it does also affect your homeowner's and auto insurance rates. I do know that some members have had great experiences but I also know that when USAA drops the ball, they drop it big time. And for full disclosure, the amount that we were refinancing was less our yearly income, our credit scores were over 800, and our assets were 10X the loan amount so we should have been a slam dunk for the refinancing but again USAA couldn't get their act together.
If you pay an additional amount each monthly payment that is equal to the principal portion of that payment and it is applied to the principal, you will pay off a 30 year note in 15 years while only being on the hook for a 30 year mortage note. However, during the later years (like 12-15), the additional payment will be high percentage of the payment. If you do this, you will also not incur any refinancing costs.
Hi @2 Huskies! There are multiple variables to consider if you are thinking of refinancing your mortgage from a 30 year to a 15 year, so it would be recommended you contact our office and speak with a Loan Officer. 800-531-8781. Items to consider include interest rates currently offered for a 15 year program in comparison to what you currently have (rates must be verbally quoted) as well as how many more years you have remaining on your current 30 year mortgage. We look forwarding to speaking with you!