I've been seriously considering refinancing my home from a 30 yr to a 15 yr. First I contacted my current mortgage holder (USBank) and they couldn't get me a better rate than my current rate for a 30 yr, which I found pretty odd. So next I used Lending tree to get some quotes, which honestly kinda turned me off. I barely hit Submit and I literally had 3 calls on my cell phone within 1 second. I'm kinda turned off by the slick sales callers (sorry to anyone in sales...it's just not for me).
Here's some of my current info:
Home value - $350,000
Mortgage - $160,000 with $156,000 remaining at 4.125%
30 year mortgage, and only 9 months into the 30 years.
I'll probably live in this house until my kids graduate, which is about 10 years. My payments are $775, but I add $225 each month, since I want to pay it off earlier. Yes, I know that it's better to invest that money, but I'm doing a hybrid approach. I'm maxing out all my other investment options (401K, MEGA backdoor 401K, HSA, and backdoor roth IRA).
The best quote I received was for 3.25%, no closing fees except for 3rd party costs (about $1,600). The bank was unknown to me, and the reviews for others weren't the best. My quote from Quicken Loans was pretty reasonable at 3.37% with lowers fees + 3rd party costs totally around $2400. With the new rates, my payment would almost the same as what I'm paying now. Running the numbers shows that I'd save about $30K+ in interest plus pay it off 5 years sooner that just making my small extra payments now.
But I'm still hesitant to do this. Why? Is this a face punch to NOT do this?