Refinance?

[banana]

If the interest rates go way way down I dont know if we should consider refinancing? We currently have 8 years and 8 months left on a 15 year fixed loan. I was playing around with some numbers and if the rates were to go down to 4% we could save over 500 a month if we went back to a 30 year loan or over 300 a month if we went to another 15 year loan. We really do want this loan paid off but on the other hand we have a 12 year old who we would love to put through college. Am I crazy to even consider it? Hubby thinks I am. But I tell you if the rates go that low I will be really tempted. Is anyone else considering refinancing if the rates go much lower?

[thesightofoneself]

i wouldnt, 8 years alone is still a long time, your choice though

[Greebo]

If you refi it to a 7 or 10 year mortgage, sure. No longer though because then you'll be prolonging the debt and will pay tons more for the longer pay cycle.

[Denvergirlie]

I would get a new 15 year mortage, but ONLY if you will commit yourself to paying it off in the orginal 9 years you have left.

However, please do the math for what this would cost you in closing costs, etc.

I would never trade a 9 year mortage for a 30 year mortage, nor even a 9 year mortgage for a 15 year mortage.

Do the math, if you can recoup the closing costs and associated fees and still pay off in 9 years and save money, then do so. Not certain if a 10 year mortgage is possible, but that is what I would be willing to do above all else.

Honestly thou, you've alredy paid the bulk of the interest on this house anyways, it's defintely loaded in the front, so you really need to look a lot closer that the math.