With mortgage refinance rates at all-time lows the affordability reasoning for mortgage refinancing has reached amazing heights. Some homeowners have the ability to convert their 30-year mortgage into a fixed 15-year home loan while only slightly increasing their monthly payment.  With 15-year home loans available at 4%, these kinds of savings have become a reality.

Its a no brainer to refinance to a shorter term home loan if you can afford the payment.  Reducing years of paying interest on a home mortgage is usually a wise financial decision.  By eliminating 10 to 15 years on a mortgage term, borrowers stand to save hundreds of thousands of dollars in some cases. 

Jeff Moran, a mortgage banker with Bank of America in Southern California, said “In these tough times, homeowners should take advantage of the cheap financing terms because they have the potential to significantly improve their financial status long term.”  Moran continued, “I have seen many clients shave nearly a $100,000 by converting their mortgage from a 30 to a 15-year mortgage.” The important thing to remember when considering a refinance mortgage is that you need a buffer zone in case your income dips.  In other words assume that your income could decline a bit and factor that into your refinance loan.  You never know what will happen in this kind of economy.