Should I do *this* HARP Refinance?

[Ben Stout]

Hello all,

I still have a mortgage I got in 2007 at 5.75%. For various reasons, it hasn't been a good idea in the past for me to refinance this property that I still owe $80,000 on.

Recently, I got something in the mail about a HARP refinance being offered to me even though this is an investment property. The offer is essentially to change interest rates from 5.75% to 5.125%. I pay no points, but it will cost me about $2800 which will be added to the loan.

The mortgage broker pushed it as a very good deal because I will get to "skip" two months of payments. I understand there is no real "skipping" escrowed bills, but I do like the idea from a cash-flow standpoint of not paying $1434 in payments.

It will take me a while to break even, about 24-48 months (depending on how you look at it.) My payments will go down $60 a month... from $717 to $667.

Is this something you'd jump on/be interested in? Why or why not? Thanks!

Ben