Would it make sense to refinance a mortgage with seven years remaining just to lower the monthly payments?
There are a few things to consider when refinancing. One being
the cost of the refi.
How much will closing costs be? For instance- your closing costs
are going to cost you $5000 to obtain a new loan. If you are saving
$100 per month on your payment by refinancing, it would take 50
months of saving the $100 to recupe the $5000. Leaving approx 3 yrs
left to realize a true savings.
Most lenders will let you "roll" closing costs into the new loan
when there is a good amount of equity in the home. You are still
using the home's equity when doing this, so will need 50 months to
recupe the closing costs @ $100 per month.