15-Year Fixed Mortgage Refinance Interest Rates in Florence, AL

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Showing results for: 15-Year Fixed refinance offers for Single Family or Townhome properties in AL, total loan amount of $228,000.

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Should I Refinance from 30-Year to 15-Year in Florence?

In Florence's hot market with 13% appreciation, refinancing to a 15-year term accelerates both forced and natural equity building. On a $118,960 loan, switching from 30-year at 7% to 15-year at 6.5% increases your payment from $791 to $1,036/month-a $245 increase. However, you'll save $98k in interest over the loan's life and build equity twice as fast. Combined with Florence's rapid appreciation, this strategy maximizes wealth building for homeowners who can afford higher payments.

How Much More Will My Payments Be with a 15-Year Refi in Florence?

Refinancing $118,960 from 30-year (7%) to 15-year (6.5%) increases your principal and interest payment by $245/month. Including Florence's $51/month property tax at 0.41%, your total PITI jumps from approximately $992 to $1,237. Can you afford the increase? If your Florence home appreciated from $148,700 to $171,005, refinancing to 15-year builds equity even faster, compounding with market growth.

How Fast Will I Build Equity with a 15-Year Refi in Florence?

Dramatically faster than 30-year loans. In the first year of a 15-year mortgage at 6.5%, approximately $6,543 of your $1,036 monthly payment goes to principal -versus only $2,379 monthly on a 30-year. Add Florence's 13% appreciation ($19,331/year on median homes), and your total equity grows $97,845 in year one. By year 5: over $489k in combined equity.

What Are 15-Year Refinance Closing Costs in Florence?

Expect $2,379-$3,569 (2-3% of loan amount) for 15-year refinancing in Florence. On a $118,960 loan, that's approximately $2,974. While the monthly payment increase is $245, you're not "losing" that money-it goes to principal, building equity. The true benefit: $98k interest savings over the loan's life. With Florence's hot market appreciation, you're building wealth on two fronts: accelerated paydown + market gains.