Advice on 'no-cost' refi
We're seven years into a 30-year mortgage at 5.5% interest. We owe $210,000, our monthly payment is $2,055, and in addition to this we pay $1,000 each month toward the principal.
We have an opportunity to apply for "no-cost" refinancing (at least that's what our mortgage lender calls it). The rate is 4.25% for a 15-year period. The monthly payment would be $2,077 and we would continue to pay $1,000 extra to the principal each month.
Is there any reason not to do this?