A shorter term usually pays down principal faster but requires a higher monthly payment for the same balance and rate. The quoted rates may also differ. Compare actual offers, then test whether the higher required payment fits comfortably within your household budget.
Compare the required payment with the payment you realistically intend to make.
Use the same starting balance
Write the amount being refinanced, including any financed costs. Compare a shorter-term offer with a longer-term offer using their own actual rates. Review both monthly payment and total scheduled interest.
Account for flexibility
A longer loan may allow voluntary extra principal payments, subject to its terms. That provides flexibility but requires discipline to follow through. A shorter contract makes the faster schedule mandatory. Ask about prepayment terms and how extra payments must be designated.
Keep other priorities visible
Emergency savings, retirement contributions, and near-term expenses can all compete for the same dollars. The calculator shows loan math, not which priority should win for your household.
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CFPB: Understanding your Loan Estimate ↗General education, not an approval or personalized recommendation. Loan terms and eligibility vary. Our editorial standards.