Quote:
Originally Posted by asphaltgambler
Total costs to close are @$4500 on a loan of $365K My current rate is 7% - the best that they can offer as of yesterday is 6-5/8%
This is interest only product same as I have now - 30 years fixed
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On a simple interest calculation, it looks like you'd be saving about $114 per month with the new rate. Divide the closing costs by that amount and you're looking at over three years until you save a dime. And even then you're only saving $114 a month. How long will stay in that house? You're probably better off just paying down extra principal each month.