Financial Advice for All Life's Creeks

Month: March 2022

When Does a 15-Year Refi Make Sense?

A mortgage refinance allows borrowers to pay off an existing loan with a new loan. A 15-year mortgage refi gives homeowners the opportunity to pay off a 30-year mortgage with a shorter 15-year loan. Refinancing can open up financial opportunities for some borrowers, but you should take careful consideration of your financial standing before deciding to use a 15-year refi.

Here are some examples in which a 15-year refi makes sense if you want to:

  • Pay down a note as you get closer to retirement. Homeowners who are nearing retirement can use a 15-year loan to support their retirement planning. The new loan’s timeline is much shorter than the original, which provides you with more financial flexibility as you approach retirement.  
  • Refinance a 30-year mortgage with 20 years or less on it to reduce its timeline. If you switch to a 15-year loan, your payments will increase but your payment window will decrease.You’ll use higher payments to pay off the loan faster. This compressed repayment schedule means you’ll be debt-free, faster. 
  • Pay down the principal balance faster on a mortgage/home you won’t be in for much longer. As a homeowner, you might consider a 15-year refi if you only plan on staying in your current home for the next 2-5 years. By reducing the repayment window, you’ll increase your monthly payments. These higher monthly payments can help you pay down the principal faster on a mortgage/home that you plan on selling within the next few years.
  • Create home equity faster. The 15-year refi, with its high monthly payments and low interest rate, helps you build home equity faster. You’ll pay down the principal balance much faster with a 15-year loan instead of a 30-year loan. Home equity allows you to use a future home equity loan, cash-out refinance, or home equity line of credit down the line if you need a cash boost.
  • Claim lower rates. Refinancing is a great way to lower your interest rates. Short-term mortgages, including 15-year loans, usually have lower interest rates than 30-year loans. Lenders typically assume less risk in extending a 15-year loan as opposed to a 30-year loan, prompting a lower interest rate. The flipside of these low interest rates is that your monthly payments will be a bit higher. 
  • Adjust monthly payments to a higher income. If you have recently increased your income, you could put that extra money to good use with a 15-year refi. By reducing the loan repayment window, you will reach financial freedom a little faster. Plus, you can more easily afford the higher monthly payments associated with a 15-year loan using your new income. A stable financial foundation can open doors for you to reduce your loan timeline.

Financial Tips, from Father to Son: Financial Investments

Fathers play an integral role in their sons’ lives. They help us make sober financial investment decisions that can change our lives. Our fathers’ invaluable lessons can help us make life-long financial investments for our coming generations. Let’s delve into the financial tips from our fathers that can elevate our future lives as we enter adulthood.


Saving enables us to build wealth to create a secure financial future. It allows us to have an alternative in handling uncertainties and various financial hurdles. Saving gives us something to fall back on in case of an unfortunate event. It is a financial discipline that helps us secure a solid future for ourselves and our families.

Be cautious about debt

Unnecessary debt strains our finances, leaving nothing to invest. When we borrow to invest, we create avenues for paying back the money comfortably. Therefore, it is essential to ensure that any debt we find ourselves into has a repayment strategy. Failure to do this can result in a financial crisis of endless debt repayments, moving from one creditor to another. As a result, we end up with nothing to invest in.


The best financial empowerment gift a father can give a son is showing them how to invest early. Putting our money in retirement investment accounts, stocks, exchange-traded funds, and other investments help us start creating wealth, giving us financial stability.

The financial tips from father to son can be a game-changer in one’s life. Saving and investing our money early is how to go regarding financial stability. With guidance from our fathers, we can be steered towards financial freedom.

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