I bought a new house 2 months ago. My ';mortgage guy'; left me a message suggesting a re-fi.
I refinanced my previous house with this same guy probably 6 - 8 times over a period of 3-4 years, each time saving between $25 and $50/month. That all sounds good. I knocked my payment down some over the years.
What always had me questioning whether it was a good idea was that the term always stayed at 30 years, so even though my payment was lower, I felt like I was back at square one in terms of paying off the loan or building equity. Am I off base?
Or is it a moot point because in the end I sold the other house and paid off the loan while enjoying lower monthly payments? If I had kept the orginal loan, would I have built up more equity? Its probably impossible to answer without know the specifics of my loan amounts an interest rates.
Is there a formula that can help me make the decision on whether to refinance and reset the term or to just keep on with the current loan?