Changing from 15 to 30 years in middle of refinancing process

3 Replies

Hello everyone,

I am currently in the process of refinancing a property into a 15 year loan. Yesterday I spoke with my real estate agent and she brought up something I hadn't thought of before. She suggested that I refinance into a 30 year loan and pay it every month with the amount I would've paid on a 15 year. That way, my payments will "look" lower when/if I go to buy another property.

My question is this, I am well into the process with the 15 year loan and will probably be closing within a few weeks. Is it ok if I contact the company I'm going through and ask them to change to a 30 year loan? I'm guessing they'd have to start the whole process over which will prolong the closing date but is changing the terms of the loan something they can do?

Thanks,

Tim

@Tim Coppola   It's really no trouble at all to change from a 15 to a 30 year, and you do not need to start the process over.  Your payment will be lower, so there shouldn't be any question about whether you'll qualify.  All your lender needs to do is change the loan term in their system, adjust your interest rate lock to reflect the 30 year interest rate (which will almost certainly be higher or cost more to keep the same rate), and issue a new loan estimate to you with the new rate / payment /terms.