Hello Mustachians,
Looking for advice on a potential refi. We bought end of last year, 30yr conventional at 3.75% w/ 5% down.
Spoke with our lender and they said we could lower our monthly payment by $150 with a refi at 2.875%. This would be with the closing costs rolled into the loan.
When I asked how much closing would cost he said he didnt have the info right in front of him - so that's a little suspicious, but am still curious if the additional monthly savings would be worth it to pay the closing costs up front.
Since we're in the first year of the original loan, that eliminates/minimizes the main downsides of refi: 1. we'd only be adding 10 months to our total loan time 2. no plans to move anytime soon.
So, it *seems* like this is a free $150/month, but i know there is no such thing as a free lunch, but cant tell where any downside would be other than we would be paying closing costs twice in one year. (But I have no regrets, couldn't imagine being quarantined in our old apartment).
We are prioritizing monthly cashflow more as we're moving to 1 income, so i dont think i'd want to switch to 25 or 20 yr either.
Does this sound like a good idea to refi? Am I missing anything in my considerations?