So I have 356 payments left with 4.25% rate (not 4.2% like I thought). Using the same monthly payment and new 3.875% rate, the number of payments went down to 331. Here I am ignoring the $200 fee. I think I will go ahead with this.
[quote=UCGal][quote=jimmyle]Now the broker is offering 3.875% with only $200 fee. The difference is $85 a month. But now my mortgage is 4 months longer.[/quote]
What if you were to make an extra principal payment of $85/month. How much shorter would the mortgage be.
(That’s what we did when we refi’d a few years ago – kept paying the same payment, with the extra going towards principal. We liked seeing the balance shrink so much we started throwing even more money at it. It’s good to be able to imagine a paid for house.)[/quote]
