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The new loan would be 360 months (I mentioned 25 years only in context of about what is left on current which would actually be 26 years; LTV is 93%).

On high LTV loans, you can be required to escrow. If you aren't currently escrowing, and you will have to on the new loan, are you okay with that?

So, if I view this as simply as rent payment with certain tax advantages, what am I missing in terms of reducing outgo by $245.00 per month?

The extra 61¢? If the length of the loan and the interest rate are the only things that are changing, then I don't see why you wouldn't take advantage of this.

AJ
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