[Dog Gone]

I'm seriously considering doing this. I have a 30 year note at 6.25 with 20 years to go.

I haven't run it through a mortgage calculator, but my guess is that it's a no-brainer.

[FreeperinRATcage]

I went to a 15 year at 6.25 right before 9/11. After that, rates plummeted, but not enough to be worth incurring all the charges to refi again.

Of course, if you do have a decent amount of equity, you'd make out like a bandit.

[oldironsides]

Go to the mortgage site and work up the numbers. You will be convinced

[mlmr]

I am taking out a 15 year at 4.75 through the internet. I wish I could go to ten, it would save me 17000 but I cannot manage the extra 300 per month.

[Ken H]

Check this out- http://www.1728.com/mortpmts.htm

[NV_Chuck]

Actually, you can still pay down principal on an existing mortgage but the interest rate is higher so you might as well get a ten year term if you can swing the payment.

On the other hand, you could alternately go for the lower payment of the 30 year loan and take the extra money and invest it something else such as the stock market or another income property. Depending on the performance of the investment, you may have more assets at the end of ten years than you would have with the shorter term mortgage. Of course if the alternate investments go sour or perform at a rate less than the tax discounted mortgage rate, you could have less assets this way.

If it's a choice of putting every extra dime to afford the ten year mortgage, you might be better off going with the longer mortgage and building up some liquid savings such as stock market and other investments. This assumes you have the financial discipline to save outside of the investment in your home.

For example, for me personally, given a choice of owning a $500,000 home outright vs. owning a $500,000 home with a $250,000 mortgage but having an additional $250,000 of cash in personal liquid savings, I would take the second situation. In the second situation, you have essentially the same net worth as the first situation, but you control more assets and have more financial flexibility.

[AZHSer]

We started in 94 with a rate over 7%. We refinanced 6 years later to 6.5% and dropped our payments by $100. Since we weren't used to having the extra cash we continued to to pay that $100 towards the principle. We also saved and paid an extra $1000 toward the principle a year. Last year we refinanced again to 5.5 with a 15 year loan and continued to put an extra $100 on it. If all goes well, we should be done in another 7 years. It is well worth it to refinance. Even if you just take out a 30 with a lower rate and continue making the old payments, the savings are fantastic. The secret is putting extra on the principle, even if it is just $10 a month.

[Eric in the Ozarks]

Do it tomorrow. You're spending more than two or three nice steak dinners each month for the extra interest.

[McGavin999]

Do it! I bought my house on a 15 year note and it'll be paid off 3 years before I retire. That'll allow me 3 years of savings to make sure I can have the roof redone, replace the A/C, and possibly rewire. Ought to make for a relatively worry free retirement.

[oust the louse]

get to your mortgage company now...no time or money to waste!

[Petronski]

Anyone considering doing this should keep in mind that if their current rate is good, and there's no prepayment penalty in the note, the borrower is free to send in the 10-year payment amount and get all these benefits without closing costs and without locking in to the higher payment.

[luckodeirish]

Do it! I just refinanced a rental townhouse in Irvine, Calif. 3 years ago no one wanted to re-fi it cause it was a rental prop. This time, I had 4 lenders wanting to do business with me. Did a 10 year, and the mortgage is now only $46 month more, take in to consideration that it was $1,284.04 per month, so the $46 is really not a lot. Happy as a clam about it, too.

[F16Fighter]

"I'm seriously considering doing this. I have a 30 year note at 6.25 with 20 years to go."

An option with only about $70 in closing cost would be a 15 year Equity Loan @ 5.5%

[fishbabe]

in 1973,my parents bought a house for 25,000 and the monthly payments were 250 a month for 30 years...well,they sold the house 25 years later for 250,000 and they felt great. where are the 25,000 houses today????even for a crappy one your still paying a 1,000 a month in california where my parents had theirs....