Why you might need to refinance:
#1: If you have an equityline - you should probably get rid of it if you can. Equity Lines allow you to pay interest only. I've been a mortgage lender for years, and people "want" to pay the equityline down, but normally they don't. In our area, the maximum FHA loan is $295,000. If you have a 1st mortgage at 5.625%, you might think it doesn't make sense to refinance with rates in the low 5s (today) - but if you look at the EQUITYLINE (or second mortgage) you have - then we might be 
saving you over $500 a month, by combining these two loans into one mortgage. Granted, you will have some mortgage insurance with FHA... but you are paying your second mortgage OFF, and building equity... AND you're saving money EVERY MONTH!
#2: There was an article this weekend in the Wall Street Journal Weekend Edition about the need to pay off your mortgage if you think you might retire one day. Okay, it's not quite that blunt - but it make the point that if you're in your 40s, you should be getting a 15 year mortgage. (click here)
#3: Owning Real Estate "Isn't a Get Rich Quick Scheme." It's an INVESTMENT - and building equity should be the end goal. If you have a 30 or 40 year mortgage... you can make an extra payment a year to bring your balance down, without refinancing, but MOST PEOPLE do not have the financial discipline to actually DO THAT. If you are one of "those people" - consider refinancing to a 10 or 15 year mortgage! You will save HUNDREDS of THOUSANDS of dollars!
#4: If you follow Dave Ramsey, you know that Step 6 is "PayOff your home EARLY." There's a new "Obama" program that allows you to refinance without an appraisal (in some situations) and rates are at RECORD lows! (read more about Dave's thoughts here)
Our church First United Methodist in Cary, NC is going to hold Financial Peace University classes this fall. It's a great program, centered on having family discussions about debt, and budgets - and making decisions that make a LONG TERM difference in creating peace of mind, with less risk and less stress. If you are interested in more information on this program, there will be a preview this Sunday! (please click here.) We think it's a WONDERFUL program for the church to be offering, and we are excited about the difference this makes for our family.
If we can help - please call Steve and Eleanor Thorne, Cary, NC 919-649-5058. We have the lowest mortgage interest rates!
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Great point - I couldn't agree more. I tell my 30 year olds to pick a point in time in the futrure when they don't want to have a mortgage payment. Maybe that's when they're 65. Then, make sure you make payments that will get that balance to ZERO by that time (sooner is better).
Good advice.