Situation: Geri and Malcolm had just finished their new home on Town Mountain and had secured a 30 yr fixed mortgage @ 5.375%. Rates had fallen and they like many others were contemplating a refinance to a 15 year fixed. They were shopping around and were given quotes in the range of 4.750% to 4.875% and were comparing pricing as well as costs.

Problem:  No "real problem" but given the small difference in interest rate – was it "justifiable"? Geri, who is very savvy, figured it just had to save them a ton of interest over the life of the loan and when you ran the numbers it did. The only problem was the closing costs incurred once again were indeed expensive. Estimates were coming in at several thousand dollars and they had only closed on their existing 30 year fixed more than slightly over a year ago. Hmm! More Here!