I would like the forum's opinion again, this time on a refi possibility:
Current loan:
-$58k remaining (original loan of $104k)
-15 year fixed
-4.25%
-$901 total payment (w/taxes & insurance)
-Paying $2,800 additional towards principle every month...scheduled to have entire loan paid off in approx 16 months (Jan 1 2014)
-As the loan amount is small and the rate is fairly good, we do not get to deduct mortgage interest...still take the standard deduction
Possible refi:
-Same $58k loan
-10 year fixed
-2.875% locked today
-Approx $2k in total costs to close, including appraisal, underwriting, title insur., etc.
-Payment would go down only slightly...$100-$200 I believe
-Even more so here, we'd get no tax advantage from deducting interest.
So, ought we refi? I also want to ask if, with the ridiculously low rate, if we ought to stop paying anything additional towards principle and just put that money into the stache.
Thanks so much for your advice! We are first time homebuyers and would be first time re-fiers, so we are babes in the woods here.