u/vermonter432

Hi!

Got an offer to refinance our loan. We currently have a 30 conventional loan at 6.5% (only just bought the house in May 2025. We are currently making an additional principal payment of $576/month, which has us on track to pay the loan off 20 years from now.

If we were to take the 15 year 4% loan, our monthly payment would be the same as we pay now with our extra principal payment included. I calculate we’d save about $240k of interest over the life of the loan relative to our current plan. Only catch is the closing costs. $24k. But 24k is still a lot less than we’d save right?

Seems like a good idea to me but wondering what I might be missing.

Thanks in advance!!