Kurt Johnson | Source | Senior Vice President at Mr. Cooper

Shorter-term mortgages typically have lower interest rates than longer-term loans because you’re paying back the loan in less time, but your monthly payment will likely go up. A rate-and-term refinance can result in big savings for a homeowner if there’s room in their budget for it. If you can afford to shorten the term of the loan and you are substantially lowering your rate, it could be a win-win as you’re paying off your mortgage faster and saving a ton of money on interest.