We’ve come a long way, beginning around January of 2013 when mortgage rates hit record lows. Just one year ago, 30 year mortgage rates averaged 3.50 percent for a primary residence and 3.75 percent for an investor property. Rates have moved up since then, hitting 4.69 percent last summer Refinancing Rental Propertiesand have settled back in the 4.50 percent range. Many real estate investors watched those rates, hoping they would go down even further and refinance when they hit absolute bottom.

But there really is no way to predict when rates touch their lows—that can only be viewed in retrospect. Yet investors don’t have to wait for rates to go lower in order for a refinance to be profitable. Some find that refinancing to a term that coincides with their existing mortgage makes sense.

Say that an investor bought a property back in 2008 and financed the property with a 30 year fixed rate loan at 6.75 percent. And for whatever reason, never got around to refinancing the existing note, even though rates briefly fell below 4.00 percent. And even if they did, with 25 years remaining on the current loan, by refinancing into another 30 year fixed rate at 4.75 percent, that’s five years of payments essentially thrown away.

But what if the investor refinance into a 4.75 percent rate but instead of a 30 year mortgage, matched the remaining term with another 25 year loan? That’s right. There are more choices available for real estate investors other than a 15 and a 30 year loan. Most lenders offer amortization periods in five year increments from 10 years to 30 and in this example, instead of adding another five years until the loan is retired, choose a 25 year term instead of a 30 year loan.

Even if interest rates aren’t significantly lower than an existing one, by shortening a loan term, the long term savings far outweigh the effect on monthly cash flow.