re: Another question regarding paying down your mortgage...

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Our "Actual remaining term left" dropped 4 months. So, with that $1,000 principal payment, do I not automatically gain $4,400 over 30 years?

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Yes. You paid $1,000 now to avoid paying $4,400 later.

quote:

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And do I not gain 5.0% on that $1,000 over 30 years?

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The $1,000 you paid today will not be subject to the 5% interest over the remaining years left on the mortgage. So if you paid it on day one, yes, it would be 30 years.


However, there are other factors such as inflation and tax deductions (if you qualify). So those numbers do have an asterisk. But on the surface, your logic is correct. I would consider refi if I were you. Unless you are planning to have this one paid off in three years, a refi on 30 years at 5% is a no brainer with today's rates.