I am ten years away from paying off my Florida home, should I refinace it at a lower rate of interest?

Answer 1

Were it me, I would start putting extra toward the principle. If you really work at it, you can have it paid off in 5 years and cut out the interest all together.

Answer 2

It sounds like you plan on staying there, so there are really only a couple things to look at here. First, what is your current rate? Second, how long have you been paying on your current mortgage? And, third, do you want to pay it off even quicker?

If you were on a 30 year fixed initially, even if your start rate was 10%, you're paying a lot more principal than interest which makes your effective interest rate very low, somewhere around 5% and impossible to combat.

If you are planning on paying it off early, which it sounds like you are, the only way to make it beneficial for you to refinance is to put the loan on a shorter term with the lowest rate possible. You can put this on a 5-7 year at under 6% right now, and you'll be set.

As long as your current rate is fixed and you don't need cash, I probably wouldn't tough it.

Good luck.

Answer 3

"This depends on what your current rate of interest is at and whether you plan to keep the home till it is paid off. There are many types of loans today and only a professional can explain the differences in them. We at Only a professional agent can help you decide if it is right for you to refinance your home, there are many items that you need to go over, how long have you owned it, what interest rate did you buy at, questions like these you need a professional you can trust like the ones at http://www.whataboutloans.com/state/mortgage/florida.html.

Answer 4

Do the math - how much would you save by having a lower interest rate (how much do you still owe, what's your current interest rate, and what would your new rate be?), and how much would it cost you to refinance? Without that info, nobody here can tell you which would be better.