Start from what you want to change, then find the refinance that fits
Goal: pay it off sooner
Straight answer
A shorter term usually raises the monthly payment but cuts the total interest and often carries a lower rate. Before paying closing costs, compare it with simply paying extra principal on your current loan, which can shorten the payoff without a new loan, as long as your loan has no prepayment penalty.
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Questions
- Can the higher payment survive a job change or emergency?
- Would extra principal payments reach a similar result?
- How do the closing costs compare with the interest saved?
People also wonder
Is it better to refinance to a shorter term or pay extra?
Extra payments keep flexibility and avoid closing costs; a shorter-term refinance may offer a lower rate. Compare both.