dynamorph[at]hotmail.com wrote:
- quote -

No it doesn't make sense. By refinancing your existing home equity
loan with a new loan with a 5 year term you are setting yourself up to
pay interest for a longer period of time, which will mean you end up
paying more in interest. The sooner you pay off a loan the less total
interest you pay; the longer you take to pay it off the more you pay in
interest.

Andy

In order to keep the 4.99%, I would ask my bank if they would increase
the amount and duration of your present loan.

Frank
dynamorph[at]hotmail.com wrote:
- quote -

I have a home equity loan (5 yr, 4.99%) which is 2 years old, and
I would like to take out a larger loan from my main bank, giving me
a bit of extra cash and consolidating my loans (I would pay off the
first home equity loan with the second). The new loan would be
5 year [at] 5.25%, and the monthly payment is not much different. Does
it make sense to do this, ie to pay off a loan early and start a
new loan, in terms of the overall interest paid? Thanks,

--
Jeff