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-- Lower Your Interest Payment and Refinance by Yourself With No New Bank Loan!

Updated on October 7, 2012

Refinance for 15, 20, 30 Years?

Is it really necessary to refinance to pay a loan off faster to save thousands of dollars?

NO! It is not! Banksters will disagree as the method described below "cuts them out" of the refinancing equation.

When one does their OWN REFINANCE, there are no fees, no credit checks, no gathering documents, and no waiting to see if you got approved or not. You are automatically approved.

It gets better. Say one has a 30 year loan now, but can only afford to "refinance" the payment amount for a 20 year loan now----or they cannot afford a 15 year payment.

With the "no Refinance REFINANCE" one can do the 20 year loan payment now.. and in a couple years when they can make bigger payments, one can redo the "NO refinance REFINANCE" again. At that time and one can schedule the loan for even a shorter payoff period.

Here we go:

What is a Regular Refinance and What is The No Refinance Refinance?

A regular refinance requires one to either 1). come "out of pocket" to pay all the loan fees, or 2). get a higher interest rate to get a "no closing cost" loan. When one obtains a "no closing cost" loan it isn't REALLY a no closing cost loan---what it really means is the bank rolls the costs into the loan so the starting loan balance is HIGHER. One gets a double whammy---the old loan balance INCREASES, AND the interest rate is higher. Eeeuuuww!

This article will not go through the details of "whether it is "worth it or not" to refinance based upon an existing interest rate or a proposed interest rate. That information is all over the internet. The "NO REFINANCE REFINANCE" loan is ALWAYS REVERSIBLE! So anytime the higher payment becomes hard, one can go back to the lower one! No forms, and nobody's permission needed.

By the way--some places sell those "kits" to pay off the mortgage faster, using biweekly payments. Not needed. Keep that $350. One can do that yourself too. And there is no need for any paperwork or anybody else's "permission".

Example: Converting a 30 year to a 25 Loan

Say a loan is $193000 and the payment is $921.41 and the interest rate is 4%. In order to cut five years off this loan: one must go to the LINK BELOW and plug in the loan amount=$193,000, current interest rate=4%, and time of loan in years as 25 years:punch calculate and ---voila! The new payment becomes $1018.73. So by paying $1018.73 the loan is paid off five years faster.

Total payments on the original loan=$331,707.60. Total payments on the "new" 25 year loan are 12 months in a year x 25 years=300 months x $1018.73=$305,619.00. The difference saved is $26,088.60. It costs $97.32 more a month to cut 5 years off this loan.

Here's what to do---on the monthly payment stub, mark the $97.32 as "additional payment" to go to principal. THAT'S IT! That's ALL THAT IS NEEDED! It is not necessary to call anybody, or to fill out any paperwork whatsoever.

In a few more years, one can repeat the procedure described above. Maybe it will be possible to pay off the whole house in 15 years.

eahttp://www.bankrate.com/calculators/mortgages/amortization-calculator.aspxrs or 10 years or even 7 years. It's not as unusual as you think. Here's the link:

http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

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    • Doodlehead profile image
      Author

      Doodlehead 5 years ago from Northern California

      Stacie--you are so right. I remember when I started in financial services I was considering about whether to enter the field or not. The thought occured to me, "YOU BETTER DO THIS" because otherwise you will be taken advantage of by not knowing finacial things.

      What amazes me is that there are topics I think of to write about, and then I think, "everybody knows that"-but it's not true, is it! Even people who could figure it out are just busy with their lives doing other things.

    • Stacie L profile image

      Stacie L 5 years ago

      Yes, this is the best way to "refinance".

      The bi-monthly mortgage programs were very popular and did the same thing with two payments a month. It gave control to the banks and other companies for a fee.

      Most people don't have enough financial skills to figure this out...and the banks don't want them to know.

      Good info.

    • Doodlehead profile image
      Author

      Doodlehead 5 years ago from Northern California

      Thanks for reading, Tycoon. Allergic to interest..LOL

    • TycoonSam profile image

      TycoonSam 5 years ago from Washington, MI

      Good information, as I am deathly allergic to interest! I've been doing this for some time now.

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