I recently refinanced my in-laws from a 20 year mortgage to a 30 year mortgage and did that create a stir. Most of the family told them they were getting older and they should refinance to a shorter mortgage term. With Milwaukee mortgage rates hitting close to record lows I suggested that they take a longer term loan. A 4.5% percent 30 year is no different then a 4.25% 15 year they would have received if they would have refinanced two years ago. The difference is working with a realistic budget. This is no different then a first time home buyer. You can always pay more when your budget allows. You can not call the bank and tell them I can not make my 15 year payment.

When clients start to get older many think they want to payoff their loan to leave more for the kids. That is coming from the heart and not from what is best for their wallets. You have people doing reverse mortgages after they pay off their homes to get some equity from their homes after retirement. A reverse mortgage can be at a much higher rate than current market conditions. Do not get me wrong if you can pay off the home early and have the resources to do so then by all means.

What happens if you pay off the mortgage and something happens to a spouse. That spouses income may have been the income needed to qualify for a mortgage. Now that the income is not there you may not qualify. Getting the mortgage now with both names allows for the transfer of the mortgage after the death of a spouse. There are no re-qualifications. This will make sure that the spouse would not have to sell the home. When you refinance Milwaukee, keep your best interests in mind. Talk with your financial adviser and see what is in your budget.