I'm in a great position now to refinance my 30 yr fixed rate at 6.25 % for a 15 yr. fixed at 4.75%. I don't anticipate having a problem with the higher payments, so it seems like the perfect time for a refi. However, with the real estate market's recent drops (particularly in my area) is it smarter to sink my money into the stock market for a long term investment, (while I can get in cheap,) than to buy more into a house which may or may not gain in value. I plan on owning this house for 3 to 5 more years and I've figured in that in 3 years I will regain all the fees and also save an extra $10,000 in interest on top of that. So here's my question--no one can tell the future, but what's your best guess as to whether it is smarter to re-invest in short to mid term real estate or long term mutual funds?
Trading in my 30 yr fixed for a 15 yr fixed or using the money elsewhere?