Please be kind as I am new to the Mustachian world. I am 40 and single. I am in year two of a 10/1 arm at 3%. When the mortgage resets in 10 years it can increase 2% per year and maxes at 9%. I can currently refinance to a 15 year mortgage with the same rate. The closing costs are $5500, some of which would be rolled into the loan of 120,00.
I am a teacher and have a 403B with AXA, but am getting a dismal return on my retirement. Our current 403B company options are AXA, Metlife, and VOYA. I am trying to get Vanguard and Fidelity as additional options, so I can leave AXA completely. If I refinance, I will still contribute to retirement at the same rate as I have been, but the higher payment will mean I won't be able to increase my retirement savings as much.
Is it a silly move to refinance when I could be putting more money into retirement or is it smarter to have my mortgage paid off the year I retire? Thanks in advance.