The episode is sponsored by Smart Vester.

You're listening to Ramsey Everyday Millionaires, where we talk investing, retirement, building

wealth, and outrageous generosity.

All right, today's question comes from Jim and Arizona.

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

very good.

And wondering if refinancing while still paying extra will put more towards the principal

and help us pay it 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 1700 a month, and we're paying 2500 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.

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