Currently shopping around for 15 year loans and wondering if a refi makes more sense than just putting the additional toward principal each month. Wondering what the expert mustaches think. Background:
Remaining mortgage $154,000
at year 25 of a 30 rate of 3.5%
Monthly payment with PITI: $1256
Being offered 2.25% for .95 points which increases loan to $161,000 with escrow but shortens total years by 10 and means I pay ~$47,000 less in interest throughout the life of the loan. Monthly payment would be ~$1510.
Downside is there is less liquidity but honestly a $250 dollar a month increase isn't too hard on our bottom line. My gut tells me that it is worth it and we should sign on the dotted line but I'm waiting for one of you full grown mustaches to tell me how I might mimic this 15 year without the $4,000 refi expense and similar long term savings.
Anyone have insight?
-onemorebike