My mortage company approached me with an offer to refinance my mortgage. The interest rate was more than 1% lower and they were not requiring PMI although I no longer had 20% equity in the house. It was a good deal. I refinanced back to a 30 year mortgage to drop my mortgage payment almost 250$. In hard times, this will be a good thing. My mortgage payment is being skipped this month so I will be putting that money into my emergency fund. That means that my emergency fund is now complete at 6 months.
It also means that my goal to pay off my mortage by 62 is a little further away. I now need to chop 12 years from my mortgage instead of 7. Depressing isn’t it? The good news is that my extra payment is actually larger (since my principal + interest is smaller) and each extra payment will kill 5 to 6 months in the beginning.
I think this new mortgage is a good thing and will help me out financially in the long run.