12-11-2009, 06:12 PM
I think there's a way to do an Excel spreadsheet for this. 
The question I'd have couldn't be answered by someone else. OK, so the monthly payments would be lower, but the clock would be reset. How long have you had the mortgage? Is this really a better deal financially in the long run? Only you can answer that, because you have all the numbers. If you have a mortgage with a particularly high interest rate, you can come out ahead. However, if the difference between the current interest rate and the new rate isn't much, you might come out paying more. Like I said, you've got all the numbers. Now, if you reset that clock with a lower rate and continue to pay the same amount each month, I'd say you'd definitely come out ahead, because any excess will go directly toward principle.
The question I'd have couldn't be answered by someone else. OK, so the monthly payments would be lower, but the clock would be reset. How long have you had the mortgage? Is this really a better deal financially in the long run? Only you can answer that, because you have all the numbers. If you have a mortgage with a particularly high interest rate, you can come out ahead. However, if the difference between the current interest rate and the new rate isn't much, you might come out paying more. Like I said, you've got all the numbers. Now, if you reset that clock with a lower rate and continue to pay the same amount each month, I'd say you'd definitely come out ahead, because any excess will go directly toward principle.