This is the Ramsey Call of the Day, part of the Ramsey Network.

Today's question comes from Jim in Arizona.

He says, we pay extra on our mortgage each month so that we can get rid of it more quickly.

Very good.

We're wondering if refinancing while still paying extra will put

more towards the principal and help us paid off faster, even though the interest rate would be

slightly higher. So here's the details. Our current mortgage is a 15 year at 2.75%. The balance is 103,000. Our

current monthly payment is $1,700 a month, and we are paying $2,500 a month.

Very good. Right now, we would pay it off in four years, and the house is worth over $600K. If we refinance, our

monthly payment would be $760 a month. And from what I've read, the interest does not apply to the

overage amount paid and is directly applied to the principal interest free.

Is this true?

Dave, have you ever read something and it makes so little sense that it makes you question your own level of intelligence.

Everything on the internet is not true.

Abraham Lincoln said that.

So, yeah, there you go.

Yeah.

No, I wouldn't refinance.

Number one, you have 2.75%.

Why would you go up to a six plus interest rate for this?

Because he thinks that the interest was all charged on the front end, and he's not,

and that he's, he doesn't understand how this really works.

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