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My scenario...

we have a 30 year at 3.5% and have 22 years left.

via our current lender, we could go to a 15 year at 2.875.... not sure of fees or anything. Don't need PMI, probably no points..

So, if we go with the refi, our monthly payment would INCREASE by around $180 per month.

Alternatively, we could keep the current mortgage, increase our payment by $180 per month, resulting in paying off the loan 6.5 years sooner and saving over $16,000 in interest... which is pretty close to where we would be with a refinance... but with the added ability to suspend the additional payment and use that extra $180 per month in case expenses go up. I guess it depends on how diligent we are with payments. A refi basically forces us to finish the loan sooner.

In response to this post by Late 80s Hokie

Posted: 03/05/2020 at 5:42PM

For those considering refinancing - Do your NPV calculations from Finance -- Late 80s Hokie 03/05/2020 3:54PM

You understand this about payments, right? -- MrBayAreaHokie 03/06/2020 12:49AM

Yes, very familiar, but thanks. As your payment remains the same, the part -- Late 80s Hokie 03/06/2020 07:58AM

Who were the lender options -- MAGRIFF1 03/05/2020 6:43PM

Elberto mentioned below Sebonic and said he had 3% and no closing costs. -- Late 80s Hokie 03/05/2020 6:52PM

Correction, Milwaukee Hokie mentioned Sebonic. ** -- Late 80s Hokie 03/05/2020 6:54PM

My scenario... -- HokieSignGuy 03/05/2020 5:42PM

We’re recasting back out to 30 years and dropping our rate by 1%. The 15 -- CPRVHokie 03/05/2020 5:09PM

Why not get an interest only 10 year then? ** -- GreenvilleVT 03/05/2020 8:39PM

Since we have 17 left in a 20, we didn't want to go back to 20 or even 30 -- Late 80s Hokie 03/05/2020 5:14PM

Everybody has different goals/priorities. ** -- CPRVHokie 03/05/2020 5:16PM

I just had a different way of thinking about it. There's an argument to be -- Late 80s Hokie 03/05/2020 5:20PM

I’m agreeing with you by saying that everyone should evaluate the situation -- CPRVHokie 03/05/2020 5:37PM

For me it was a no brainer - Going from 25 yrs to 15 yrs ... -- VTENGR 03/05/2020 5:08PM

Plus you are assuming you will not sell your house during this time period. -- capitals1 03/05/2020 4:50PM

The man at the top just had a heart attack. ** -- GreenvilleVT 03/05/2020 8:41PM

My scenario...

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