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Our new mortgage needs to have a snowball payment otherwise we will not have our house paid off until 2038. Ouch! Ideally we could pay off our current mortgage in 10 years.
Here are the different choices.


This needs to be a substantial enough goal that we will be willing to make the payment each month. I found with our previous mortgage that the best way to do the snowball payment was automatic transfers in weekly installments for 52 weeks each year. This way there is no monthly decisions to make each month.

Refinance
In the past, we have not been in favor of refinances. Closing costs were too substantial. I would rather see a large chunk of money like that go to pay down the principal.

The other item to look at to boast moral is how much interest will be saved by paying off early. Let's assume that 2026 would be the longest we would consider going on this loan.


Our amortization schedule from the mortgage company has the finance charge for a 30 year loan at $340,000.