If you are considering mortgage refinancing, choosing a mortgage with a 15 year term length will save you thousands of dollars. Many homeowners that refinance pay little thought to the high cost of 30 year loans. Here are several tips to help you choose the right term length when refinancing your mortgage.Not many homeowners weigh the costs and advantages of choosing a 15 year mortgage instead of a 30 year loan. When refinancing their mortgages the majority of borrowers opt for the 30 year mortgage without giving it a second thought. Here is an example illustrating just how much you ll save with a 15 year mortgage.Suppose you are refinancing your home for $200,000 with a fixed interest rate. With a 30 year mortgage you qualify for 6.50 percent interest rate and have a monthly payment of $1,265. Over the term of this 30 year mortgage you will pay your lender $255,000 in mortgage interest, more than the amount you actually borrowed!Consider the same loan with a 15 year term length. Because you are choosing a loan with a shorter term you qualify for a lower mortgage rate at 5.90 percent. It s true your payment will be higher because you have less time to pay back the loan; however, you will pay significantly less to the lender in finance charges. Your monthly payment for this loan will be $1,670 but you will only pay $101,850 to your lender for the financing. Can your budget support this higher monthly payment? When you consider how much you ll save most homeowners can squeeze this money from somewhere in their budget.You can learn more about your mortgage options, including costly mistakes to avoid with a free mortgage refinancing tutorial.

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