If you want to do long-term damage to your personal finances, start all over again by refinancing for a full, 30-year term. That way, you spend thousands of dollars on interest that you otherwise could have saved.
"The first question I say is, 'How long have you had that mortgage?'" Siegel says. "If they've had it for at least four to six years, I say, 'Look, I know you want to refinance, but at least let's do a 25-year, so you're not back at square one.'"
Then, she explains the monthly payment on a 20-year term, because after hearing the details "(they) might want that.'"
Reducing the term by just five years can yield big savings. On a $200,000 mortgage at 5 percent, you save $35,758 in interest by paying off the loan in 25 years instead of 30.
Pay off that home loan in 20 years instead of 30, and you save $69,733 in interest.