Hi, I did not put the 20% down for the house should I pay some of the loan down to drop the PMI or invest our extra income?
We are late 20's with household income 250k, 80k in savings, 10k in student loans at 2-5%, no other debt.
Current Principal Balance $312,617.82
Effective Interest Rate 4.12500%
Maturity Date 02/2047
Principal and Interest payment: $1,565.42
Principal: $489
Interest: $1076
Escrow: $911
Escrow is used to pay our taxes, home insurance, and PMI.
House has supposedly increased in value $19,000 on Redfin. If we choose to refinance, we would probably get a higher loan rate 4.625%, and we would need to pay a $300 reappraisal fee plus a fee for the loan officer.
Our PMI is $110/month and does not decrease over time
If we want to do the "auto-termination" PMI option down to 78% instead of refinancing, we will need to pay $46,679.
edit* Thank yall for your helpful comments! I am going to pay off the student loans and pay down the mortgage to get rid of the PMI today.
Submitted December 26, 2018 at 11:45AM by Wilesch http://bit.ly/2rXaAwi
