[Rick Lee]

Taxes and insurance are escrows and, if they're tacked onto the loan amount, you'll get a fat refund when they adjust your existing escrows a few weeks after closing. Unless you plan to be in the house 30 yrs., which is very unlikely, don't even think about the amount you save over that period. Figure your break even point - total closing costs/monthly savings. Whatever that is, you need to stay in the house that many months before you really save dime. After that day, it's all gravy.