We just locked a 3.75% 20 year mortgage in last week

with closing in a month. We have 26.5 years left on our 30 year current mortgage at 5.5%. With the interest rate drop, our monthly payment will only go up $10 but instead of $175 going towards principal monthly, it’ll be $375. The closing costs will be paid for in just over a year.
If you’re asking whether you should take cash out, I’m pretty sure Dave would be opposed.

We’re probably going to finish steps 4 and 5 this year, so I was planning on putting more money into the house anyway. I considered a 15 year at 3.25%, but the extra $140 would put us at more than 25% of our takehome pay. I crunched the numbers and if we put that extra $140 in monthly even while keeping the 20 year mortgage, it’ll be paid off in 16 years, so I figured it would be better to maintain the flexibility of the 20 year.