Refinance Rental Property

[Guevara M.]

Back in early of 2004 I purchased a small 1 bedroom, 1 bath condo not knowing anything.  Purchased it for $36K, 30 year note @ 6.125%.  As of today I still owe about $21K and have been wondering if it makes any sense to try and refinance that amount to a 10 year fixed rate to save some interest.  Would appreciate any advice on this.  

[Charles Carillo]

@Guevara M.

I am not sure if many lenders will refinance a $21,000 loan. If you find one that will; make sure the closing costs don't outweigh the savings. If you lowered the interest rate by 3% (for example) that is a savings of $630 a year. If they charge $3,000 in closing costs it will take 5 years to break even. This does not seem like a good deal. I would rather just increase my monthly payments.