4 Thoughts on is it worth refinancing with only 6 yrs left on mortgage?
  1. Reply
    dadnbob
    February 13, 2014 at 12:57 am

    It would depend on the old and new interest rates. Either way I’d pay extra toward the principle each month. That’ll get it done even quicker. Just be sure to include a note with the payment that the extra is for the principle.

  2. Reply
    Lovin Summer
    February 13, 2014 at 1:41 am

    You didn’t give us too much infor on your end. Depends on what kind rate you currently have?? Good rule of thumb to use in mortgage rates, is to refi if you can drop AT LEAST ONE FULL POINT. But it also depends on how much they are charging you for the loan. Rates right now are very low, btw. I’m currently refi, but I’m doing the HARP program. Good luck

  3. Reply
    M W
    February 13, 2014 at 1:54 am

    No. On a $ 30,000 balance, any reduction in interest rate would result in a minimal reduction in monthly payment.

    Instead, increase your monthly payments on your own. Add $ 80 or $ 100 to each monthly payment, and you will cut the amount of interest drastically and will shorten the remainder from 6 years down to just a few.

    You have paid the major portion of interest already, so most of your monthly payment is going to principal anyway, so there’s no need to refinance.

    Refinancing is like getting a new mortgage and you have all the costs associated. Survey, Appraisal, filing fees, recording fees, points, etc. Save yourself that money, and pay down on the mortgage monthly instead.

  4. Reply
    J S
    February 13, 2014 at 2:38 am

    Probably not because your scheduled payments at this point are paying very little interest and mostly principal. Were you to refinance you would start a new amortization schedule and front load interest so even a lower rate would probably cost you more in the same 6 years. Unless of course you took out a 6 year mortgage. Even a 10 year mortgage with accelerated payments to payoff in 6 would likely cost more.

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