Mortgage Refinance Question - please Help!

[Matt Lorenzo]

I bought a duplex in Cleveland, OH last August. It was 79k total. I put my 25% down and got a mortgage rate percent of 4.99%

I hear a lot of REI investors are doing mortgage refi because rates are so low right now. After contacting my lender they said they might be able to get me a rate of 3.9%. Once the numbers are crunched, I would end up lowering my current mortgage by about $35 per month. I was told it would cost me approximately $2500 for the refi to be conducted.

I plan to hold my property for the long term. Would putting up the $2500 for the refi be worth it for a $35 per month savings?  Thanks in advance

If I did take that rate and pay the $2500, I would save $420 per year and a total of $12,600 over the life of the 30 year loan, but it would take around 7 years to pay myself back the $2500. 

Thanks in advance!

[Joe Homs]

@Matt Lorenzo that actually sounds like an owner occupied rate?  You original rate is more inline with what banks are offering investors on their loans.  I usually see anywhere from 1/2 to 1% increase in interest rates for investor loans.  

To answer your question I would pass on the refi.  Your tenants are paying for the mortgage.  

Good Investing....