Question:

I have a mortgage balance of about $175,000. I am doing a biweekly payment trying to shorten the 30-year fixed term. I have excellent credit, and would like to refinance into a lower rate. Can you direct me to a lender who can help me? – Philip

Answer:

Current interest rates alone are probably not reason enough to look at refinancing. However, since you’ve probably reduced your outstanding mortgage by $15,000-$20,000 since you first took it out, you might be able squeeze out a little extra positive cash flow through a refinance. We think you should explore your options with several different lenders. It’s going to be important to minimize the expense associated with a refinance in order to achieve your goals, so, shop around. As an aside, you’re essentially making an extra payment each year by paying your mortgage every two weeks. Maybe it would be helpful to put this program on hold until you’re able to take care of the necessary repairs. This would free up a little cash and do so without incurring any cost.