Another mortgage thread -should we refinance?

[clarabelle]

If you are about half way paid off on your mortgage -does it make sense to refinance?
We are finally getting to the point where more it going to the principal than the interest.
Our rate is 5.4%.
I will confess to not completely understanding how refinancing works
Thanks!

 

[HeatherC]

It depends on your situation. If you are halfway through a 30 year at 5.4% it could make sense. We are refinancing now...see other thread....

We are going from 5% to 4.25% and will save about $150 a month on a 15 year mortgage.

You would have to run your numbers since it comes out different for everyone based on their own circumstances.

One site I use to calculate the payment differences is www.mortgage-net.com. Just click on calculators/tools and you will be able to plug your numbers in to see how it would play out.

I would definitely look into it since they will probably never be this low again for a very long time.

Hope this helps you!

 

[clarabelle]

Thanks!