You don't need to get crazy here. It's simple.

-Find out what the refi you want will cost.

-Find out what rate you'll get.

-Use an amortization calculator to figure out whether your savings will exceed the cost of the refi, under whatever scenario you want (ie keep paying extra, pay minimum, whatever).

It's likely that you can save yourself a nice chunk of change if your current rate is 6%.

I'd be tempted to refi into a 15 year @ 3% or whatever, pay the minimum, and invest any extra money.

-Walt

Hi All,

Happy Frugal New Year!

I'm 15 years into a fixed mortgage at 6% that I've been overpaying each month. I'm not sure it's worth refinancing and no mortgage company will help me do the math because they don't understand it or I'm not an easy client, so they avoid the questions. How can calculate whether I've already saved as much as I can on lower interest by lowering my principle (thereby shortening my loan period by about 5 years), or if it's worth refinancing at this mid-point in my 30 year mortgage where I'm approaching the tipping point of paying more interest than principle.

Thanks!