We just had a quote from a reputable lender for our first refinance ever. We bought our house two years ago in April. We currently owe @$140k on an FHA loan. We have a 3.75% interest rate. Our payments are @$1200 per month, which includes our taxes and insurance. We are in the middle of paying off our credit card, only 2 payments left, and then we'd have one car loan, our student loans, and our mortgage.
We were offered two options: 1. 3.75% for 15 years, with a payment of $1400 per month, or 2. 4.75% for 30 years, with a payment of $1100 per month.
Do we continue to make extra payments on our debts and continue paying $70 a month in PMI or do we refinance and just make smaller payments on our debt to save ourselves 15 years' worth of house payments before we own our home(which we're thinking of selling within the next 3 years)? We don't think it's worth refinancing for another 30 year loan, with a higher interest rate, just to save the PMI.
Edit: I thought this was also important: "You will receive a full refund of your escrow account. Anything in your current escrow account will be sent to you via check. That is your money to keep. I will fund the new escrow account through the new loan to make sure you aren't short on taxes or insurance.
• Any and all closing costs are rolled into the loan. (an estimated $3600 including appraisal) " email from loan officer.
August 26, 2017 at 02:09PM
