Blend and Extend Mortgage

Blend and Extend Mortgage

We are currently in year 2 ish or our 5 year term mortgage. Our interest rate is at 5.25% and amortized over 40 years not great, not horrible. We decided to see what we could do to take advantage of the low mortgage rate at 3.69%. Our mortgage lender suggested a Blend and Extend Mortgage. Essentially we would be extending our current mortgage for another five years and blending our current interest rate with the new market interest rate making out interest rate now 4.47%, all for a very small fee.

This new interest rate wound now lower out mortgage payments. Well, we’ve been managing our current mortgage payments just fine, so we decided to take advantage of our ability to increase our weekly accelerated payments and keep them the same. So, by blending and extending then increasing our mortgage payment back to what it was we’ve save ourselves about 10 years off our mortgage amortization. How cool is that?

 

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