There are a few things to clean up first. Don t pay points. Not while rates are falling. Instead, just wait for the rate to drop. Think about the taxes.
Many people think it makes tax sense to carry a big mortgage, and for some it does.
At the beginning of a mortgage, nearly every penny of your payment goes to interest rather than principal, and that interest is tax-deductible. The value of the deduction rises with your tax bracket. If you decide to refinance, there are things you can do to make sure you get the best rate. First, talk with your current lender. Let s say your payment history is perfect.