I'm on a 30 year fixed loan with the following properties:
- 5% interest
- No penalty for early payments
- Pretty recent loan, hardly any equity
I'd rather be on a 15 year fixed loan, so that I can pay less in interest, and get more equity sooner. I don't think refinancing would make much sense for me, since my interest rate is not terrible, and I'd have to pay fees.
So my question is: If I just raise my monthly mortgage payment to the right amount, is that basically equivalent to being on a 15 year fixed loan? Is there any drawback to this?