should i refinance from a 20 year loan to a 30 year loan

[Robert Leardi]

Im considering a re-fi on my primary residence with the following numbers.. Currently have a fixed rate 20 yr loan with 18 1/2 years left with a 4.25 rate and principal is 1808. I was thinking of refinancing back to a 30 year loan with a 3.75 fixed rate and a principal payment of 1291. a month. My thought is to take the $517 monthly that I'm saving and invest in low cost index funds throughout the life of the 30 year loan. Any thoughts would be greatly appreciated. Thanks

[Harjeet Bhatti]

30 year fix is good option when you are thinking about using that saving in other investment. But you are adding years in your mortgage. In your loan scenario you are getting lower interest rate  and saving will be used in other investment which makes sense to take 30 year fix.