Mortgage Blog

Q:I have 250k loan with 3.875% for 10 yr fixed; paid for 4 months.
And would like to refi with 15 yr fixed 3.75% for no closing cost.
I don’t quite get it why you don't recommend to refi. 
Could you explain a little more?

A: To payoff your loan for this 10 yr fixed program, you will need
to pay 115*2516.3 = $289374.5(refi will take about 1 month)

For the new 15 yr fixed, with 243k loan, $1767.15*180=$318087.

You will pay more if you don’t  pay extra.
You will also payoff in 9 years 7 month if you pay $2516.3 as current
payment.

You will only save about one or two months payment. But not as much as
expected.