[quote=scaredyclassic]except the principal does go down. so you get that little bit extra edge.[/quote]
No. In both scenarios you pay $400k in principal. It’s your choice if you want that in the form of 180 $2700 payments or a $22,700 payment with 167 $2700 payments
You still make a $2700 payment every month until the 169th payment in both scenarios.
For future refis, yes the balance is now $20k smaller. But if you think you will refi lower why would you prepay to finance less and get even less savings from refi-ing
