[shulta44]

I have a daughter starting college this year. I have less than 5 years left on my 15 year motgage, a total of less than $90,000 at 4.79%. Rates are at 3.95%(or less) and I can get no closing fees or refinance fees. Is it practical to refinance. I will have another daughter starting college in 5 years, just as my mortgage runs out.
Appreciate any input.
Thanks

[cdad]

Im not an expert in this subject but refinancing may not be your best advantage for this situation. At best your mortgauge deduction won't outweigh other benefits that you could receive from support your children through college. You might want to look at this and see how it fits into your planning.

Ref:

TurboTax® - Sending Kids to College

[excon]

Hello s:

Not knowing your total financial situation, I couldn't say whether it's "practical" or not.

I'm gathering that you need the money to pay for your children's education. If so, there are probably better ways to go about it. You do know that you're entering the sweet years of your mortgage. Finally, after MOST of your payments have been going to pay interest, now, MOST of your payments are going toward your principal. That means during these next five years, you're going to be paying YOU, and NOT the bank. If you start over, you're going to be making the banks wealthy, and NOT you.

Given these rates, I doubt your payment will decrease much, either.

excon

[shulta44]

Thanks Cali and Ex, both valid points. I will check the turbo tax link. Your not joking about the sweet years I see it every month.
Thanks

[Fr_Chuck]

At this point at 5 years, most of the interest is already paid into the loan. And at that lower interest ( not really a lot of savings)

Next once paid off, would the value of the payment do the finance of the college ( assuming you are paying the bills)