Yeah, like I said, I've been watching the market for at least six months, and the savings are just too stupid to overlook.
I see a lot of threads of woe on Era. Bout time we get a little positivism for a change.
Especially you, where you started over 5%. Yeah, you're gonna save big during the lifetime of your mortgage.
Most long-term loans (this applies to cars too) are front-loaded. Unlike auto loans which are fixed (when you sign the dotted line, you're paying that interest even if you pay ahead of schedule), you can lower how much interest you pay on a house if you pay ahead, true.
I was also "paying ahead." 13 months of payments in 12. But again, the interest is front-loaded, so while I would save in the long run, I wouldn't be saving *as much*. Also, with a 15 year mortgage, you're earning equity faster, so if you have to sell, well, that's more cash for you if you want to upgrade to bigger OR downscale.
Key in this process for me is that refinancing to a 15 year mortgage with the interest rates bombing means my monthly payments don't change. Usually, you pay more, so for me, there's nothing to lose except if I don't refinance, lol. Some people like the poster above, will actually see LOWER monthly payments by refinancing to a 15 year than their 30 year simply because of the 5% interest rate.
So yeah, if only ONE person in this whole thread saves the equivalent of the average household income in the US because I brought this to their attention, then mission accomplished.
I suspect that adding all the people who said they'd looking into refinancing, over the life of our combined mortgages, probably in the millions of dollars saved.