Required versus optional
If you refinance 26 years remaining into 15 years, the new payment is the bill. Missing it has the same consequences as missing any mortgage payment.
Extra principal on the current loan can be paused. The interest savings stop when the extra payments stop. The payoff calculator shows that optional path.
Include the costs
A shorter term only wins if the interest saved, after closing costs, is worth the higher required payment. A small rate improvement can be eaten by fees if you refinance again soon.
Compare the current remaining term with the new term in the refinance calculator rather than assuming 15 years always beats 30.
| Choice | Payment |
|---|---|
| 15-year refinance | New required payment |
| Extra principal | Old payment, plus whatever you add |
Calculators
Related guides
Sources
Common questions
Can I get a 15-year rate without refinancing?
Not on the existing note. You can imitate the payment by sending extra principal, but the rate stays the old rate and the extra amount is voluntary.
What if the new 15-year payment fails the 28% test?
The affordability guideline is educational, and a failed test is a reason to look again. It is not a lender decision.