I'm torn: Should I refinance my 8% mortgage to 7% with $2k in closing costs or stick with my current loan?

A Reddit user is weighing the benefits of refinancing his mortgage from 8% to 7%. With a closing cost of $2,000 offset by the lender's negative points, he could save about $200 monthly. However, this means restarting the loan term, which raises concerns about long-term costs and impacts on savings. Calculating the break-even point shows he won't be out-of-pocket but needs to consider the implications carefully before making a decision.

The user should first calculate the break-even point for refinancing, which in this case is immediate due to the lender absorbing closing costs.

Even though he saves $200 monthly by refinancing at a lower interest rate, he should consider the long-term implications of resetting his loan term.

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