Quote:
Originally Posted by OnlyGerman
15 Yr 2.5% Total cost including points and upfront taxes/insur to refi around 10k? Coming from a 30yr 4.0%. Should I be concerned about the higher cost if I'm going to paying it off so much quicker and saving ton in interest?
Amount towards Principal on new is $1300 each payment, old was just $430~.
New payment amount would be $450-500 higher. I am OK with this.
Seems like the smart thing to do if I stay in this home, correct?
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Upfront funding of escrow for taxes and insurance should not be part of your loan cost / rate determination. They get paid no matter what - whether you refi or not. If you are paying out of pocket to fund escrow for a new mortgage, you should receive the escrow balance from the old lender after the new mortgage closes.