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[quote=Anonymous][quote=Anonymous][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]

Right.  Basically negative points.  Rather than pay points up front to get a lower rate, you are likely paying a higher interest rate so that extra money will be available to be used for closing costs.

Compare the rate against other quotes.  Regardless, you will wind up with a lower payment with no costs to you, which is good.[/quote]

OP here.
I think the above comments are correct. I've done a little online research, and there definitely are lower rates out there, but they would require closing costs.  Since we're not sure how long we want to stay in our house, this deal makes better sense for us. I know it's always recommended to get 3 quotes, shop around, etc, but the truth is we would never refinance if we went through all that! I guess that's what the "catch" is: we're paying more for convenience. But since it will decrease our monthly payment and not add significantly to the life of the loan, I think we will do it. Plus I love the idea of being able to throw down a little more money into the house. Thanks for all the feedback! 
(I checked and there's no prepayment penalty)[/quote]

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