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Everybody's situation is different. Will you keep the home until it's paid off or will you sell it in a couple of years?
Have you looked at an amortization program to make comparisons? I have questionss about saving $500 per month with a one percent reduction in interest -- how much is your mortgage, 2 million $$ ??
Perhaps a chunk of that saving is no longer paying Private Mortgage Insurance (PMI)?? If so, that's a plus.
[This message has been edited by rpxlpx (edited December 10, 2002).]
Most people never pay a 30-year loan to the end, whether it's in 30 years or 24.
IMO, the information presented here is not enough for anyone to say absoloutely for certain whether it's a good idea to do this refinance.
I'm still questioning that 500 per month improvement with a 1% drop in rate. It appears to me that at current rates, you improve by 500 per month on a loan of around 900K$. And I suspect that the poster isn't refinancing a million-plus dollar house. (could be wrong, though)
If I'm right, where's the difference coming from? a reduction or removal of PMI? a misleading number that leaves out taxes and insurance?
There's just not enough info here to give conclusive advice.
[This message has been edited by rpxlpx (edited January 06, 2003).]