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Need to compare my current mortgage with the possibility of a refinance.

I currently have a mortgage that I am 12 years into. $155,000 at 8.5% for 30 years. I have been pre approved for a lower rate. 4.5%. But because I am 12 years into my current 30 year mortgage, more principal is being paid off. I am having a hard time deciding which route I would save more money on. With a new 30 year at half the interest (with a lower payment I could easily make extra payments to apply toward principal) or keep the structure the way it is in spite of the 8.5% due to the age of the loan.

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The rule of thumb is this:
Refinance if you can lower your interest by atleast 2%. choose a 15 year loan. Do not pay more than 1% of your loan ammount in upfront fees to refinance. I hope this helps. I spent 30 years as a Real Estate Broker.

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That's a good rule of thumb. I'll calculate that up when I get home. Thanks.
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To handle this, you should first understand your credit score. You should visit a mortgage organization to learn about the best and favorable options you may take that will handle your situation.

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...I understand my credit score. Thanks anyway.
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