Refinancing a mortgage to a shorter term can significantly reduce the total interest paid over the life of the loan. While this generally increases the monthly payment, the savings in interest over time can be substantial. This is a common strategy for homeowners who want to pay off their mortgage faster.

By opting for a 15-year mortgage instead of a 30-year mortgage, for example, you not only pay off the loan sooner but also save tens of thousands of dollars in interest. However, this approach may not be feasible for everyone, especially if higher monthly payments strain your budget.