Both wife and I currently work and we're 1 year into a 30 year fixed mortgage, at a rate of 4.25%. We make roughly the same amount. We are thinking about kids in the next few years, and though we both think we will work while we build our nest egg, we don't know for sure.
After maxing out both 401k's, and putting an additional amount in securities each month, we're currently paying at the 15 year pace (extra $1,200 per month).
My question is: is it worth locking in the additional fixed cost in our monthly budget for interest savings? Bankrate advertises a 3.1% on a 15 year. The difference in monthly payment is $1,000 a month vs. my current statement amount.
Assuming we can get that, the difference after normalizing for tax deduction is $23,000 in interest in 5 years, and 38,500 over the 15 year lifespan. That's not huge considering the flexibility we currently have, as well as the opportunity cost of investing in the market if opportunities become attractive.
Thoughts?