I purchased my house in 2004. At the time I took out a 30 yr mortgage, $333,700 loan at 6.25%. My payment was $2054/mo. Then in 2009 I refinanced at 4.875% 30 yr mortgage for $328,000 (closing costs rolled into the loan). My payments are now $1735/mo, about $319 savings/month. Now the rate is 3.875%, which means I can lower my monthly payment to about $1540/month, about $195 savings/month.
I'm only into this new loan 2 years, so it does not seem a big deal to me to reset the loan to 30 years. And god for bid I lose my job or get hurt, that extra savings a month would help. My wife however thinks its bad, and she's more interested in paying off the house. I told her it does not make sense to pay off the house at these rates, its not like years ago when rates were 8, 9 or 10%. I like the fact that I can keep almost $200 in my pocket every month. Just curious what everyone else thinks.