we have been in our new home for 25 months now, and are paying 71/8 percent on a 30 year conventional. we drug our feet too long and missed out on the recent low rates. we owe a little over 100,000 on the home with about 20-25 thousand in equity. i can get around 61/2 percent now, but i dont think it would be worth it. i am just looking for some advice and or opinions. thanks all.

Really it depends on YOUR personal goals...but if it were me, I think it MIGHT be worth it--BUT ONLY IF you also do something else with the loan. For example (assuming yours is a 30 year loan), if you go to a 15-year term instead, you can make some serious headway toward your equity.

Note that you can do almost the same thing by making additional principal payments on your existing loan.

Bottom line: again, if it were me, I wouldn't refinance for the fractional percentage; it's just too expensive (appraisal, closing costs, bogus fees, etc). And don't forget that if you get a new 30 year loan, the "clock starts ticking" from day-one all over again--and you'll start anew with 30 years "to go". At least now you only have 28--even without extra principal payments!

Good luck, don't fret too much!
-k

OK let's see if I can get all of this said and understood.
1. If you plan on staying until your 30 year mortgage is up then refinance now. That 5/8% can really add up over 30 years. Now if you plan on moving in 1 year then hang tight. I figure VERY ROUGHLY that it would pay off for you if you stayed longer than 5-8 years.
2. If you refinanced you could probably lower your monthly payment. Which if applied to your new loan you could probably pay it off faster than the old loan. Or you could apply that to other higher interest loans and pay those off faster.
3. Do you pay PMI right now? If so it sounds like you are getting close to where you can request to stop paying on that. I believe once you pay off 20% of your house you can ask to have the PMI removed. If your house sold for $125,000 25 months ago and now it's worth $130,000 due to inflation then you're under the 80%. You may be able to get an appraisal ($300) and request to get rid of the PMI. If you refinance maybe you can do all that with one appraisal.
4. Did you shop around? You may be able to get a better interest rate somewhere else, but be careful because you may payhigher closing costs for lower interest rates.
5. Your mortgage company should be able to give you an idea whether it would benefit you or not. Ask them for a chart to show you where your principle will be in seven years as opposed to where they would be in seven years if you refinanced with closing costs.
6. Interest rates go up and down everyday. Check with your mortgage company everyday to watch for lower interest rates. Lock in at the lowest rate you think it will go. It's a guessing game as to when to lock in.

If anyone disagrees write in and I will explain further or learn new stuff. Thanks.