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This mama is living deep into the woods to protect her babies that freezing to death! No rescue interest.

The most common term for a homeowner's mortgage is 30 years. This is because it offers the lowest monthly payment of any term. However if you are planning for retirement around 65, your 30 year mortgage may overlap. If you do not want to make payments on your home when you retire you would have to get into a 30 year mortgage by 35 years of age. This is not the only option though, you can refinance into a lower term.

20 Year Mortgage for First Time Home Buyers
Getting into a mortgage by 35 could be a problem for many because of strict lending requirements. Also with a shaky real estate market, the investment scares many first time home buyers. The option of buying later is always available, but first time home buyers may have a hard time qualifying for a 20 year mortgage. The best mortgage term available for a first time home buyer is often the 30 year term. So getting into a 30 year mortgage later on in life still leaves the option of refinancing to a shorter term.

Refinancing by 45 Years Old
If you are planning on retiring at 65 and want to be mortgage free, you could refinance with a 20 year mortgage at 45 years old. Even if your 30 year mortgage has only been paid off for 5 years, a refinance to a shorter term is possible. By using a 20 year mortgage to refinance you can cut time off your term, preparing for retirement. Also, you will only have a slightly higher monthly payment because the interest will be less.

Although a mortgage stretched out over 30 years is a great loan for someone who has never bought a house, refinancing is inevitable if you want to save money. With such a long term the bank is charging more interest. Refinancing your home will utilize your newly gained credit, which means you will receive a better rate. Also, if mortgage rates are at an all time low when you refinance, you will save money on your loan. The 10 year and 15 year option can be viable solutions for a refinance but they have higher qualifications to meet. A 20 year mortgage can easily be obtained in a refinance if you have been paying your mortgage payments on time.

Planning for retirement is important when it comes to paying your mortgage. If you have a monthly home payment to make, retiring may cause you to default. Looking into the option of refinancing at a lower rate is your best bet of saving money and paying your home off on time for retirement. After all, if you save money in the long run on your home, you will have more money for retirement. As always, a mortgage banker will offer you the best information about terms and refinancing. They can also notify you of government assisted programs which could be a better option for retiring by 65.

Fred Bohman believes the retirement should not involve a monthly mortgage payment. If you are in a 30 year mortgage and looking to retire within 20 years you may want to refinance now, especially with how the US housing market is currently.

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STATUS : - read comment for update from crossposter
With interest rates dropping to the lowest they have been in decades, it may be very tempting for homeowners to refinance. If you own a home, you may want to consider refinancing your mortgage to get a better interest rate. However, there are several things that you should take into consideration before you jump in.

Consider Why You are Refinancing

Are you refinancing because you can't afford your monthly mortgage, or are you refinancing to simply take advantage of lower interest rates? When you apply for a home refinance loan, you need to ask yourself these questions in order to make the best decision. If you can't afford your current mortgage, refinancing might be the best way to save your financial reputation and allow you to keep your home. This may limit your choices of refinancing loans. If you want to get a better interest rate, you will have a little bit more flexibility in your options.

Terms of Your Current Loan

If you only have a few years left on your current loan, you may not benefit from refinancing. A refinancing loan often involves several fees, and these fees may erase any progress you might make by getting a new loan. You may have to pay for an appraisal, field review, closing costs and payments to your mortgage broker. These may add up to a thousand dollars or more, so you need to factor those into your decision.

Look carefully at the terms of your current loan and at the one that you are considering. You will have to decide if the fees for refinancing will still put you in a better financial position than your current mortgage.

Type of Loan

When you refinance your mortgage, you have to make sure that you are getting a loan that will benefit you. Avoid an adjustable rate mortgage, because your rates will increase when the market's rates increase. Opt for a fixed rate mortgage. This means that your rate will stay the same no matter what happens to the national interest rate.

You may also be eligible for a special government loan known as an FHA loan. These loans must include escrow, which is an additional amount that is set aside for your property taxes and home insurance payments. The rates for FHA loans are a little higher, but you also won't have to set aside money each month for taxes and insurance.

Financial History

In order to be able to take out a home refinancing loan, you need to meet the financial requirements. Make sure that you don't have too much debt, which will discourage lenders from taking on your loan. You should also check over your bank statements to make sure that you don't have any overdraft fees or negative bank charges on your account.

After you have carefully looked over these factors, you can determine whether refinancing your home loan is the best option for you.

I hope my article was helpful! If you need help acquiring the right home loan in Chicago.