Should I refinance or pay more towards original principal?

If you are planning to stay in the house for a long time, then it comes down to a few things. Do you think you will refi in a later time, such as for cash out for college, retirement, etc. Then see the "total" costs involved in the new loan compared to your current 30 yr. If you take the amount you spent by the amount you are saving, this will be your break even point. If it takes you a short period of time to recover your outlay (increase in loan amount, title, escrow, appraisal fees) then a refi would make sense. Another thing to consider is, yes you might get a rate in the 4's on a 15 year loan, but what happens if your income is slashed, or something else happens. Then you are stuck with the accelerated payment. If you continue to do as you are, then you can pay down the house years faster. If you go to bankrate.com and use their calculator, you will see if you do bi-weekly payment, add extra each month or add 1 payment a year, what it does to your total cost, interest and time it takes to payoff the loan. Good luck!

Whether you refinance to a 15yr or 30yr rate you will save money long-term. Choosing the 30yr with a rate as much as .500 lower than your current rate with extra principal payments or a 15yr with a rate over 1.00% lower than your current rate are both good choices. Please let me know if I can answer any additional questions. Travis Conlon www.travisconlon.com