re: Calculating Hidden Cost of Reamortization on a Refi

A little bit of information missing, but this should give you an idea.

I assumed minimum payments made on the current mortgage. This puts you owing about $177k today.

If you continued making the minimum payment on the new mortgage, you'd save ~$200/month. This would cost you a good bit in equity in the home over time (and the couple years of payments). However, you'd see about $30k savings in payments.



If instead you paid a little more to the new mortgage, you'd see a lot more savings as a result of the refi...still saving $100/month. You'd also maintain the equity value and ultimately pay off the mortgage sooner than the original.



Again, without the exact numbers to input I can't give you an exact answer.

ETA: Only thing missing would be current principal on mortgage and amount you're willing to pay to P&I (keeping in mind total payment including escrows). Also, I assumed "low 3s" to be 3.125 - 3.25 % with no points.