Refinancing

[marianne202]

I know when we refinanced shortly after buying our home we were advised that if we could recoup your costs of refinancing within two years it was usually worth it, especially if you have a long mortgage left to pay. We now have 19 years left on our mortgage and are considering a refinance to a shorter term loan, but we are already at a low interest rate, so it is very hard to find something that will allow us to recoup costs within 12-24 months. We believe that we may be further ahead of the game to just make an extra payment directly to principle each month and shorten the loan on our own than to refinance, so you may want to consider that if your rate isn't too high. It also allows for things like a job loss or illness, where a new shorter mortgage with higher payment does not. Just something to think about that most mortgage brokers, banks or refi companies won't tell you! Just one or two extra payments a year can knock several years off your mortgage.