Refinance or no?

[SunsetBengal]

(11-27-2020, 06:54 PM)HarleyDog Wrote: Good feedback. I think my only drawback is for most of the payment going towards interest again before principal. However my thought was to continue the $550 payment regardless of how much lower the payment would go to increase principle payment.

I ran the numbers, refi for $65K, for 10 years @ 3.49% would give you a payment of $642.45

If you did just the remainder of the existing principal, the payment would be $444.78

If you did it for $55K, just to cover the new HVAC, the payment would be $543.61

Personally, I think that the smartest route would be to only refi enough to cover the HVAC.  The monthly savings on your energy bill can be rolled into a home improvements account, essentially keeping your same house payment with lower energy costs, and money to fund your other wish list over time.

https://www.calculator.net/payment-calculator.html?ctype=fixterm&cloanamount=55000&cloanterm=10&cmonthlypay=1000&cinterestrate=3.49&printit=0&x=65&y=26