Own Your Home Sooner.
Refinance into a shorter term, which may help you build equity faster and reduce the total interest paid over the life of your loan.
Quick answer
Saxton Mortgage does. At least one conventional program we offer allows a limited cash-out refinance that changes the rate and/or term of your existing mortgage, and closing costs, points, and prepaid items can be financed into the new loan. Above conforming limits, at least one jumbo program offers rate and term refinances up to $3,000,000 on a one-unit primary home.
Rules for paying the home off sooner
Fannie Mae lets you refinance to change the term of your mortgage, not only the rate.
- Refinance into a shorter repayment period
- Prepayment penalties on your current loan can be included in the payoff
- Extra principal payments allowed when your loan documents permit them
- The monthly payment usually rises, total interest falls
- A land contract signed more than 12 months before you apply can be retired
- Works at any rate level, not only when rates fall
Term changes are an accepted use
Old prepayment penalties get covered
Extra principal stays allowed
Overage can go to principal
Trust beneficiaries can refinance
Co-owner buyouts can qualify
What is the Saxton Shorter-Term Refinance?
Refinancing to own the home outright sooner
FHA has its own definition: a reduction in term means cutting the remaining amortization period of your existing mortgage. On an FHA streamline, that shorter schedule can serve as the net tangible benefit when it leaves you financially ahead, with separate tests for larger and smaller reductions.
Shortening the term reduces the time left before the mortgage is paid in full. Fannie Mae names a change of term as an acceptable use in its limited cash-out rules. You can change the term with or without changing the rate.
Two details matter more when the goal is payoff speed. A prepayment penalty on the old loan can be folded into the payoff, and after closing, Fannie Mae allows extra principal payments as your loan documents permit. Learn more about second home and investment property.
Why choose the Saxton Shorter-Term Refinance?
The rules that shape a shorter-term refinance, from payoff costs to who stays on title.
Ten Years In
Owners a decade into a loan are the natural fit, because the remaining balance makes the shorter period affordable.
Retiring Without A Mortgage
Timing the payoff to the year you stop working is a common and entirely rational reason to do this.
Deferral Liens Need Cash-Out
A payment deferral recorded as its own second lien cannot be cleared through a refinance that gives no cash back at one lender. Paying it off takes a cash-out refinance instead*.
Old Note Needs 30 Days
For a Freddie Mac refinance, one guide requires the old mortgage’s note date to fall at least 30 days ahead of the new note, with proof in the file*.
Equity Builds Faster
A shorter repayment period builds equity quickly, which can also bring mortgage insurance to an end sooner.*
It Works At Any Rate
Unlike a rate refinance, this one is not waiting for the market. The saving comes from the period, not the rate.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about paying your home off sooner.
Saxton Mortgage does. At least one conventional program we offer allows a limited cash-out refinance that changes the rate and/or term of your existing mortgage, and closing costs, points, and prepaid items can be financed into the new loan. Above conforming limits, at least one jumbo program offers rate and term refinances up to $3,000,000 on a one-unit primary home.
Yes, it can be. Fannie Mae allows the payoff of your existing first mortgage to include amounts such as prepayment penalties, late fees and a deferred balance left from a prior loss mitigation solution. Those amounts become part of the new loan instead of cash you bring.
Yes, when your loan documents permit it. Fannie Mae allows additional principal payments that prepay the mortgage, including payments applied to principal to reduce the monthly payment. Read the new note for any limits before you sign.
The lender can apply the excess to your principal balance. Fannie Mae caps that correction at the lesser of $2,500 or 2% of the original loan amount, and it has to be applied before the loan is delivered.
Yes. Fannie Mae treats it as limited cash-out when the home was jointly owned for at least 12 months before the new mortgage is disbursed. All parties sign a written agreement covering the transfer. The owner who keeps the home cannot receive any of the proceeds and must qualify on their own.
Yes, that is possible. At one program, a VA IRRRL may raise the principal and interest payment when the new term is shorter than the old one. If the full housing payment rises 20% or more, the lender must certify that you qualify for it.
Yes, if the taxes are paid in full through the transaction. Fannie Mae requires the tax payment to go straight to the taxing authority at closing, and none of those funds can be disbursed to you.
Yes, when you are already obligated on the loan being paid off and the LLC is majority owned or controlled by you. Fannie Mae requires ownership to be transferred out of the LLC and into your individual name.
Find out what you qualify for
Tell us how soon you want the home paid off, and we will review terms, payoff costs and title details before you apply.
Get Pre-Qualified- Consumer Financial Protection Bureau, mortgages
- Consumer Financial Protection Bureau, buying a house: tools and resources for homebuyers
*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. Loan limits follow the annual conforming limits set by county. Down payment and cash-out limits vary by occupancy, credit score, and documentation type. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.