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[quote=Anonymous][quote=Anonymous]OP here,
Good points everyone. I will find out about whether there would be a pre-payment penalty. 
The refinance is through Greentree which is my current mortgage company.
And our current term is 15 years with 9 remaining.
The new loan would be for 10 years, but they would let us put down more money to reduce the principle payment even more. That  would really help our current cash flow situation. It would let us put more money into 401k's and other tax deferred savings.
[/quote]

Odds are they are offering you a slightly above market rate and the money they make is on the spread between the true market rate and the rate you sign. Just hypothetically, this might be 25 bps. If you plan on paying the loan over the entire amortization period it's likely better to pay closing costs than not, but given the opportunity to shift funds to a tax deferred status that math becomes more complicated. Short version is id spot check the rate with another bank and then pull the trigger if it's not as absurd[/quote]

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