"Vijay Kumar" wrote in message ...

You have to figure out what your objective is. Is it to make a smaller
payment, pay off sooner, or take money out.

My objective is to pay less overall in paying off the home loan, and with
your scenario below, it appears I'd save about $1400 overall at least, which
is $1400 of real money. I think I'll look into it. Thanks!

Assuming it is not the last
option, let us run some numbers.
At 45k and a 15 year loan @7.375% your payment is $413.97. Your current
balance is $ 35k. If you make payemenst at 413.97+50= 463.97, you will
payoff the loan in approx 102 payments (8.5 years).
You may be able to get a loan for about 5.25% + a flat fee of $ 2000 (worst
case). So your principal is $ 37k@ 5.25% whcih works out to a payment of $
450.46 assuming you payoff in 8.5 years, You save $ 13.50 approx per month.
If you continue to make the same payments of 463.97 you will payoff the loan
in approx 98 payments , about 6 months earlier than your current payoff.
If you extend the loan to a 15 year term then your payment will be $ 297.43
a savings of $ 166.54 per month.

Actual numbers will depend on the rate and costs that you can get. It is
your move counselor!