I am not good at math or finance/economics so I would appreciate some help from someone who is.
Interest rates are low. I owe 70K on my house at an interest rate of 5.35%. I have 27.5 years remaining. My payments before escrow are $417 and $495 with escrow.
I can refinance for 15 years at 3.1% with $1500 closing and 650 Out of Pocket for Applicatoin and Appraisal.
My question is, is it possible to pay more every month to get the same effective interest rate (3.1%) and if so, what would this number be (keeping in mind the 2100 I save by not refinancing)? If I pay more per month without refinancing, who much more would I need to pay and are the interest costs for the life of the loan the same if I refinance the 70000 at 3.1% plus closing costs versus paying extra to have the loan paid off by the same time the refinance would end? Any thoughts would be appreciated.