Should I refinance one of my rental’s to a 20 year fixed or no?

[Jason Scavilla]

Here is my dilemma. I bought a rental here in Florida where the house was previously "homesteaded" (basically get a discount on taxes as it's your primary residence). This year the homestead is gone and I have gotten a letter stating my taxes are going from $565/year to $2,400ish/year. That's a drastic jump in a year and will increase my payment about $150/month in escrow. Some numbers to help. My current rate is 5.375% on a 30 year fixed rate, my PITI is $691/month, current rent is $1,300. I owe $96,197 before November's payment and I currently pay $900/month total to pay down the mortgage quicker.

Talking to my mortgage broker, who is phenomenal, she can get me 3.875% fixed 20 year mortgage, it will increase my total amount owed to $103,000 and my mortgage payment will go to $943/month. I guess I’m just trying to figure out if it’s “worth it”. With me laying down the mortgage early I was shaving about 12-13 years off the mortgage, but now that my taxes are going up the extra payment is “gone/lost” and that’s why I’m debating on refinancing. I am a big fan of paying extra “if I can” and pay off the mortgage quicker, I am still getting cash flow either option but refinancing will be the less cash flow option.

I hope I made sense and didn’t just ramble on, thanks for any/all advice.

[Jason Scavilla]

@Bradley Sriro I guess I didn’t think of doing another 30 year but I can look at that. I will see what a 30 year will be. Thanks.