I have a loan with 18 years left at 5.125%, with balance of $132k. I pay about $1,020/month ($1350 with escrow and whatnot).
I can refinance to 15 years at 4.00% with closing costs of $967. Monthly payment would be $981. Alternately, I could refinance to 10 years at 4.125% with closing costs of $1,000. Monthly payment would be $1350.
I'm paying an extra $1,000/month to principal and hope to continue this until the loan is paid, barring any big and expensive life events.
I can use Bankrate calculators for the basics, but the extra payment throws a monkey wrench into the equation. My end goal is to be loan-free by 2016, so is the extra savings of the 10-yr loan worth the higher closing costs and the loss of monthly wiggle room the 15-yr would provide?