Refi-filter: Lowering my monthly payments, but paying more in the long run. Is it worth it?
October 26, 2009 7:45 AM Subscribe
I'm eight years into a 30 year mortgage, having paid off about 10% of the total amount of the original loan. Does it make sense to refinance now if I can get a rate that is about 5/8 of a point lower than my current rate? This would shave about $250 off of my monthly payments. But then I'll still be paying for this loan for eight additional years after the original one would have been paid off, right? How do I calculate how much additional $$ I'll owe overall, and how do I decide whether paying more later is worth saving money now?