How I am saving over $100,000 on my mortgage!!!

This summer I was "taking a break" from my financial goals.  Sounds funny right?  Well, I work in education, so I have summers off.  I ended the school year, and simultaneously met two financial goals:  I paid off my private student loans, and met the annual savings goal I set for my Freedom Fund.  I decided that over the summer, my partner and I would come up with a new plan that would start in September.  July and August would be all about maintaining, relaxing, etc.  We were successful.  We didn't drain our savings, or gain any debt.  We also came up with a new game plan.

Of course, anyone that knows me knows that I don't "relax" very well.  I have a huge tendency to burn the candle at both ends.  In fact, if I could find a third end to burn on that candle, I'm sure I'd try...  So, here's what happened...

The day before we were leaving for a trip to Stockholm, Sweden, I saw an email from my credit union.  They were advertising a mortgage special; a flat fee of $799 (in my situation, I don't even need to buy an appraisal).  I know one of the mortgage officers there, so I quickly shot her an email.  She knows me quite well, so immediately asked:"Aren't you supposed to be in Sweden?"  She knew I couldn't resist a deal that could possibly save me a lot of money, and boy is it going to save me some serious money!

What I have currently is a 30 year fixed that started in 2011.  So, I have 24 years remaining on it.  The refinance will lower my rate by almost 1%.  That doesn't sound very exciting, does it?  Don't be deceived!  Because I would be refinancing to a 15 year fixed, the total savings would be $99,970!  That's some serious dough!  Side note:  I personally would never refinance my mortgage if it meant paying a loan for longer.  I know there are people with valid reasons for doing so, but I would avoid it.

Now, my payment would increase by about $150 per month, but this is a rental.  The rent being paid by the tenants more than covers the difference.  Now, let's add another exciting dimension to this scenario.  If my partner and I put an extra $100 per month to the mortgage, we will pay it off 2 1/2 years sooner.  That means that we will save even more money!  It also means that in roughly 12 years, none of the rental income will be paying a loan.  It will truly be passive income!

Needless to say, we are going through with the refinance and planning to save a boatload of money, while paying the loan off significantly sooner!

Have you ever refinanced your mortgage?  Did it save you a lot of money in the long term?  Alternately, are you considering a refinance now?  Have you figured out what your overall savings would be?