Refinancing at a longer repayment term may lower your mortgage payment, but may also increase the total interest paid over the life of the loan. Refinancing at a shorter repayment term may increase your mortgage payment, but may lower the total interest paid over the life of the loan. Contact us to discuss the option that best meets your needs.
Should You Refinance to Pay Off Your Mortgage Faster?
You could pay and build equity faster with new terms.
Make your home your own sooner than later
When you’re ready to build equity faster, you may be able to refinance to own your home sooner.
You could refinance to:
- Minimize total interest paid.
- Increase home equity sooner.
- Align mortgage with long‑term financial goals (retirement, debt‑free living).
Often, you can choose a shorter term that saves you time and money, especially on interest.
Who is this kind of refinancing for?
A rate-and-term refinance might be right for you if you:
- Can comfortably pay more each month.
- Want to pay less total interest.
- Want to own your home outright, sooner.
- Are aligning with long-term goals like retirement or becoming debt-free.
- Have not refinanced recently.
You could save money if your new term is shorter or interest rates are lower than when you purchased.
What should I consider?
Make sure to account for the following:
- Higher monthly payments:
Make sure a shorter term with higher payments is manageable, and consider whether you could make additional principal payments instead.
Estimate monthly payments - Timing:
You’ll be creating a new loan, with a new 15-, 20-, 25- or 30-year term. Consider any plans to sell or move. - Savings goals:
Be sure to consider your emergency fund and long-term goals when you choose new terms. - Interest rates:
Compare the rate you’re paying now to today’s rate, and make sure it makes sense.
Check Current Rates
FAQ
Benefits of refinancing with a shorter term mortgage include:
- Less interest paid over the life of the loan
- Faster equity growth
- Earlier mortgage payoff milestone
- Making additional principal payments
- Refinancing to a slightly shorter term
- Hybrid approaches (no decision pressure)
Yes, but it usually only makes sense if your goal is to accelerate equity building and pay less total interest over time. A shorter term at a higher rate mortgage works best if you are comfortable with a higher payment but you could own your home faster.
A good credit score gets you better rates but you do not need a perfect credit score.
PNC does not have prepayment penalties.
Want to Talk About Refinancing?
Talk through your situation with a mortgage specialist.
Important Notice to Servicemembers and Their Dependents. If you are currently eligible for benefits provided by Servicemembers Civil Relief Act (SCRA), refinancing current debt may not be beneficial.
NerdWallet and the NerdWallet logo are trademarks owned by NerdWallet, Inc. and used with permission.
©2017-2026 and TM, NerdWallet, Inc. All Rights Reserved.
Brilliantly Boring is a registered mark of The PNC Financial Services Group, Inc.
PNC is a registered service mark of The PNC Financial Services Group, Inc. (“PNC”). All loans are provided by PNC Bank, National Association, a subsidiary of PNC, and are subject to credit approval and property appraisal.
©2026 The PNC Financial Services Group, Inc. All rights reserved.
PNC Bank, National Association. Member FDIC
Read a summary of privacy rights for California residents which outlines the types of information we collect, and how and why we use that information.