Mortgage Strategy
Should You Refinance Into a 15-Year Mortgage?
A 15-year refinance can slash total interest cost, but monthly payment often increases. The best choice depends on your cash-flow strength and timeline.
When a 15-year refinance can be strong
- You can comfortably handle the higher payment.
- You want debt-free housing sooner.
- You prioritize long-run interest savings over short-run cash flexibility.
When it may not be the right move
- Your emergency fund is thin.
- You need monthly cash flow for other goals.
- You may move before the refinance break-even point.
Practical approach: compare two options side by side: keep current term vs 15-year refi, then review break-even and total payment over your expected holding period.
Decision checklist
- Confirm payment fits budget stress test.
- Calculate break-even months.
- Model both 5-year and full-term outcomes.