Refinancing

 I was recently offered the opportunity to refinance a mortgage I have had for 81/2 years on one of my rental properties. I have paid down about $10,000 in capital.

On the face of it, it looked good deal a reduction from 6.625% to 5.625%, fees of around $1500 and a reduced monthly payment if $110 per month on the P&I payment. No appraisal was required.

However it was another 30 year loan and the clock would start again. So although during the time period of the new loan starting and the point at which the old loan would have been paid off I saved "$28,000",  I would still owe $43,000. is it such a good deal now?

Yes I could still keep making my same payment but now that wouldn't be sufficient to ensure the loan got paid off at the same time. Would it?

I had just spent 8 years paying down the front loaded interest and I would have to do it all again. I have never seen this aspect discussed before. Am  I missing something here?

Not sure how relevant it is but the loan is about $20,000 under water and it qualified for HARP 2.