Hello, I'm sorry for my late response. I wouldn't refinance if it's going to be too high of a monthly payment for you. However, if you can refinance and shorten the term AND keep the payment at a comfortable range for you I'd explore the option. I typically analyze the overall situation of my client, ask for the clients thoughts and together we can come up with a plan. If you qualify it's worth looking into at least refinancing to save money in this market and we could also look into shortening the term if it makes sense. With a longer term there is a bit more of a tax advantage (longer term= more tax write off) but it usually makes sense to refinance into a lower rate because you may savea fortune over time even if your tax write off isn't as high. - Mon Mar 12, 2012