<prompt> Human: Trying to decide on whether to take advantage of this. Current situation: Original purchase price: 250,000 in 2005 Refid sometime in 2012 ; 204,250 at 4.375 Current house value: 225,000 as of current appraisal 308 months left on current mortgage, 1019.79 PI monthly 188,000 balance owedOur current mortgage company contacted me and and, as a retention offer, wanted to refi us at a lower rate while keeping the same term 308 months. There are no closing fees involved, but in order to receive the rate, we need to have slightly over 20 equity in the house. In order to do that, they wrote up a loan agreement with a loan of 175,000. This would mean wed need to bring around 14,000 a few thousand in escrow to the closing. Im guessing we would get the existing escrow balance back, and we would also be skipping a mortgage payment during the process. This would lower our monthly payment from 1019.7 to 885.64.Current savings account has almost 7 months of expense, this would bring it down to around 3.5 months. I was out of work for almost 8 months and just started at a new company last month through a temp agency with an option to hire full after 3 months. Im fairly confident I will be hired full-time. Wifes employment is pretty stable.rpersonalfinance, yay or nay?  <response>: 14k at 4 interest for 25 years compounded monthly is almost 38k. It looks like you are poised to save 27290 in interest over that same period with the new terms.If you take the new deal and save the 134 difference in loan payments and invest it at 4, after 25 years youll have about 55kI think it all depends on your goals. 