I need to refinance my 30yr. $267K balloon mortgage, with 23 years remaining.
I am looking at three options: 1) 30 yr., 2) 15 yr., and 3) Pay down the mortgage by $86K from savings, and refinance the remainder at 30yr.
The results I get are puzzling. I see very little difference in consumption over my remaining lifetime (on the order of 0.3% difference). Why is that? Furthermore, when I choose option 3) I see a reduction in my Medicare Part B premiums for the first 5 years of retirement totaling about $8K. What is that all about?