Debt consolidation

[brewer12345]

Brewer, thanks for the response. Note with the 10 yr fixed at 3.75%, the monthly payment would be $845 with the $1,700 rolled into the loan amount. Presently we are paying $972 + 500 or $1,472 monthly.

Whether you finance the 1700 or pay out of pocket, it is still a cost to you. Your effective interest rate will be higher because you are paying off 81700 and paying back 83400 (with interest). Not a deal-killer, but go into it with your eyes open.

Edit: I fixed the principal balance. I also ran the numbers on my handy dandy HP12C and calculate that if you roll the costs into the new loan and pay all the scheduled payments until the end of the 10 years, your effective interest rate is 4.02%. If you prepay, the effective rate starts climbing from there.