| Actually the cost of refinancing, versus the 1% saved would be a good indicator. In some cases you are only paying up front in costs what you would "save" by lowering the interest rate. Also, a refi should not be done by anyone not staying in their home for at least the following 5years. (Personally, having done a refi some years ago, of a 9%/30yr down to a 6.5%/15 year said loan now paid off) I would suggest keeping your current loan. If you have additional funds and want to pay off sooner, you could pay towards the principle (be sure to designate the money as such or it will applied either to end of loan or escrow account for taxes, ins, etc). However, in this economy, I would be more interested in keeping any extra funds safe for emergency. |
