DH and I are strongly considering this. It would lower our rate from 5% to 3ish%, and add about 3k to our mortgage total. Our area is not recovering at all. Our comps come in about 65k below what we owe, so really, 3000 is a drop in the bucket, although I don't like getting more underwater at all. My thought is that we could either a. continue paying the same amount we do now and get a bit ahead on the principal, or b. put the extra toward our next step, which is saving for a replacement vehicle, and home repair sinking fund. Our "catch-up" time on it would be 15 months, without extra payments. Since we can't sell it, I feel pretty certain we'll still be here. Although, we desperately want to move from this house, we're aware it will be a while :(
Anyone have experience with this? Any pitfalls? It almost sounds too good to be true. Thoughts?