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Can we shorten our loan term without huge monthly prepayments?

Q: We have a $240,000 balance on our loan @ 5.25% with completion on 9/2018. We would like to complete the loan by 9/2016 the latest? What would you suggest besides putting $1,100 extra in our monthly payment?

A: It would appear that you are well along in your mortgage, and at the stage where you're no longer paying much interest. In fact, if we reckon correctly, you are paying principal at twice the rate of interest right now. Because of this, there's little to be gained by refinancing and then prepaying, especially since you want to shorten the term... and that would require even a greater rate of prepayment.

Prepaying's the only way to go... but you might be interested to know that (if our calculations are right) that to close out your loan by September 2016, it should 'only' require about an $850 per month prepayment, not the $1,100 you mention.

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