Yes but refinancing is not a silver bullet. After 10 years you would have only paid off $7k in principal. So you'd re-fi at 10% at $143k and refi at 7% at $130k. Twenty years worth of payments for only $20k in principal.
Your payments would total $375k over that period. $350k at 4% would total the same amount but with $200k in principal paid down.
I'd much rather be in a situation with $200k in equity versus $20k in equity. And remember, both people have the same monthly payment amount!
Your payments would total $375k over that period. $350k at 4% would total the same amount but with $200k in principal paid down.
I'd much rather be in a situation with $200k in equity versus $20k in equity. And remember, both people have the same monthly payment amount!