# How to change from a 30 yr mortgage to 15 year?

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I bought a house a year ago and am in a 30-year mortgage. I was just looking at a 30 vs 15 year calculation and the 15 year mortgage is only about \$ 100 more a month.
Can this be right? The loan is for about \$ 63k.
Can I change from a 30 year mortgage to a 15 year one? If so, what all do I have to do??

11 Comments
1. Reply
Terry S
February 22, 2011 at 3:16 pm

Pay it like a 15 year mortgage.

It will then be paid off in 15 years.

2. Reply
geistswoman
February 22, 2011 at 4:02 pm

The loan amount isn’t that large, so yes, it is possible. You just have to go to a mortgage lender (bank or other company) and refinance your existing 30yr mtg. This just means, you will pay off your old mortgage with the new one. Just be careful… you just took out the 30yr mtg a year ago. Did you pay any fees? Points, closing costs, etc? You will have to pay these again. Sometimes it pays to wait a while. A good rule of thumb…. if the rate is 2% lower than your exisiting rate, it may be a good idea. If not stay put…. you can always put the \$ 100 extra towards principal each month. Just by making one full mortgage payment extra per year and putting it towards principal, can knock years off your mortgage.

3. Reply
golferwhoworks
February 22, 2011 at 4:50 pm

just send in an extra check every month for the extra \$ 100 and in the memo mark it PRINCIPAL ONLY and you will pay out in 15

4. Reply
David Beasley
February 22, 2011 at 5:33 pm

Hmm… that doesn’t sound right.

\$ 63000 15yr amort at today’s rate of 6.0% P&I = \$ 539.60.

\$ 63000 30yr amort at today’s rate of 6.375% P&I = \$ 398.93

\$ 141 difference.

I’d love to sell you a refi, but if you already have a good rate on your 30yr fixed (7.0% or less) I’d say just send in the extra \$ 141 instructing the lender to take that \$ off your principal.

Best of luck!

5. Reply
MsBurgundy
February 22, 2011 at 6:17 pm

You’ll have to refinance to a 15 year loan. Or simply make monthly payments like you are paying the 15 year loan. If you can add that \$ 100 more per month, your 30 year will be paid sooner than 30 years. Make sure you don’t have a pre payment penalty first, though.

6. Reply
gofish1985
February 22, 2011 at 6:29 pm

that doesnt seem right the mortgage i got for a 15 yr is 1,940 a month if it was 30 yr it would of been 876.21 a month its like a 1,000 dollar difference something is wrong check it out again and this house is 2,000 sq ft in a good area here in michigan

7. Reply
frak1a12345
February 22, 2011 at 7:26 pm

Yes, it can be right. For that amount of principal the difference is not great.
The fastest and easiest way to change is to simply make extra principal payments every month to your lender. Leave your current mortgage alone–don’t refinance. Refinancing is expensive and the banks love it. One thing that is required of you is to have the discipline to make those extra payments rather than decide to buy a new car or take a foreign vacation or etc.
One upside of this plan is that should some money problem arise in the future you have the flexibility of going back to your original monthly payment and conserve your cash by not making extra payments.
One thing you should check in your current mortgage is a prepayment penalty. Most mortgages have a penalty clause but they either disappear after a few years or place a cap on how much extra money you can repay in a year. You want to avoid penalties–it is like throwing money away.
I paid off my 30 year mortgage in about 18 years by using my yearly profit sharing check to pay down the mortgage. In other words rather than small extra monthly payments I made one large extra payment per year–it worked for me! Good luck!!!

8. Reply
JULIE H
February 22, 2011 at 7:28 pm

Actually you could pay it off faster if you left it like it is. Don’t go with a 15 year mortgage. Make extra monthly payments and make sure and ask that it goes straight to the principal.

Every loan has a worksheet called an amortization sheet. On that it shows every payment you make and what goes to interest and what goes to principal. If you can afford a higher payment take that money and start paying it on principal.

You can use the link to the calculator to figure out how much this will help you to get out of paying interest…

9. Reply
Mark C
February 22, 2011 at 7:36 pm

Just send in the extra \$ 100 a month with a note ” pay toward principle ” and watch the mortgage melt away.

10. Reply
Apeke
February 22, 2011 at 8:20 pm

I was in the same situation with you few years back, I think there is a technique to quickly do this easily, I came across an article last year
You don’t have to physically change it from 30 years to 15 years, you can actually use the paid-for portion of your house to pay off the unpaid-for portion of your house.
I believe the more you pay the less the year to pay off your mortgage
You can get more info at
http://mymegaportal.com/howto/payoffyourmortgagesooner.html

11. Reply
Jenn
February 22, 2011 at 8:47 pm

You have two choices. You can refinance to get a 15 year mortgage or you can just pay extra on your principle so that you pay it off in 15 years.

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