Should I re-finance my house?

How long have you had the current loan?

The spread is enough to consider it, but if you're really close to paying off the old loan you might do well to leave it alone.

Also, related questions -- does the bank you're considering have an automatic withdrawal feature, and does if offer the ability to pay a portion of the mortgage with each paycheck (e.g., if you are paid twice a month, can you pay 1/2 the mortgage at that time or shortly thereafter?)

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bi-monthly withdrawl.

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What are the pros and cons to this?

I do not do this but the way it works out if you are paid bi-monthly then you receive 26 pay checks a year as opposed to 24 or 12. This will allow you to pay an extra payment per year and this will help pay off the loan quicker.

Thanks

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Bi-weekly is the one with 26 paychecks per year (this is how I am paid and I have 1/2 my monthly payment taken out on the following Tuesday). I will pay my mortgage off the day before Halloween 2012, two years ahead of schedule.

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Actually that is right on schedule for the way you are paying it. You are simply paying more now obviously. Roughly the same effect can be done by simply paying a little more on each of your regularly monthly payments or making a 13th payment annually. Banks market this 'service' for a fee generally to GENERATE more money for themselves, not save you any. If the service was free it's a good deal, if not, they just took your money.

My mortgage is handled through a company called CU Members Mortgage (the CU standing for credit union, it works with several of them in this area) which is part of Colonial Savings here in the DFW area.

In order to participate in their "Interest Saver" program (as they call it, if I remember the name right), they charge $1 for each wire transfer ($26 per year).

If the bank charges a lot for it, then it may not be worth it. I've seen some mortgage companies charge $100s per year for this.

The answer is definitely yes!! You will save thousands in the long run...lock it in today. I wish I was leaving the military and buying mjy last house ever in the market conditions of today!!

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Should I re-finance my house?
I'm at 6.1% for a 15 year fixed and the bank has this same type of loan for under 4.0%

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No, you should not refinance your house.

It's not financially wise to pay less interest over several years. Most intelligent people prefer to continue to pay more than 50% more interest above what they could be paying if they refinanced. That is why you never hear of anyone refinancing their house when rates decline.

Too much?

Look at at 10yr. You could possibly get 3.5% or do 3.75% with no origination and cut your cost going into the loan. Doing a 10yr would definitely benefit if you are staying in house.