If you find yourself in a position where you have only a few years left on the term of your loan it may not be in your best interest to refinance. As with all loans, over time, more of your monthly payment goes to the principal amount as opposed to interest. This means that the farther you are into your loan (closer to term) you are actually paying less interest.

With a refinance there are some up front costs to consider that may off set the monthly savings; like having to pay for an appraisal. In addition even with no lender fees you still incur costs at closing due to Florida State taxes. With so few years left on the term of your loan and most of your monthly payment going to principal your best option may be to try and put a few more hundred towards your mortgage payment each month and focus on paying it down as fast as possible. Educating yourself about your current loan status and about different financing options will help you make smart decisions to save the most money. For more information on loan programs and to discuss your options, call RP Funding at (321) 397-4420