REFINANCING small mortgage balance

Hi Terry,
Is there any option,or can you suggest a strategy when the mortgage owed amount is only around 29,000.00 dollars or so and you would like to reduce the loan rate which is currently double the going rate. We are 63 years of age and don`t want to take on a long term loan. Generally speaking , I have not seen or heard of loan offers for such small amounts. We could pay it off with savings, but would rather not for various reasons that you have mentioned in the past. Any recommendations or ideas would be greatly appreciated.
Thank you,
Ray

Terry Says:  You haven’t been looking in the right places.  You should be able to easily refinance your mortgage for a 5 or 10 year period if you are still working, have good credit, and if the value of the home hasn’t fallen below the amount you owe.  In fact, the HAMP program is designed for people like you who have kept current.  Beware of refinancing fees, but certainly check at various banks — or at www.GuaranteedRate.com.   (If you are in Illinois, my contact there is Leslie Struthers — and her email is Leslie@guaranteedrate.com ).

If for one reason or another listed above, you can’t refi — then the best strategy is to add a fixed amount every month to your monthy payment — and be sure to specify that it is to be credited to PRINCIPAL amount of the loan.  In fact, you can ask your mortgage servicer how much you would have to add each month in order to pay off the mortgage in full in 5 years.  That also will save you a lot of interest, assuming you can afford the extra payment.  You’d be surprised at how little extra it takes to do this — so be sure to ask, even before you do the refi.