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Started By
Message
Would you Refinance?
Posted on 7/9/18 at 8:07 am
Posted on 7/9/18 at 8:07 am
I purchased my home with a RD loan in 2014.
I put 0% down and used cash on hand to renovate it. I'm pretty sure my LTV is less than 80% now. Would you guys refinance to get rid of the PMI?
the PMI is pretty low ($55/mo), but for the lifetime of the loan. Interest rate is currently 4.25%, but I know rates are on the rise.
Thoughts?
ETA: I think If I were to refinance, I would choose a 15 year loan.
I put 0% down and used cash on hand to renovate it. I'm pretty sure my LTV is less than 80% now. Would you guys refinance to get rid of the PMI?
the PMI is pretty low ($55/mo), but for the lifetime of the loan. Interest rate is currently 4.25%, but I know rates are on the rise.
Thoughts?
ETA: I think If I were to refinance, I would choose a 15 year loan.
This post was edited on 7/9/18 at 8:09 am
Posted on 7/9/18 at 8:11 am to LSUengineer12
quote:
I put 0% down and used cash on hand to renovate it
This is exactly what I would like to do.
How does one go about finding out if an area is eligible for an RD loan?
Posted on 7/9/18 at 8:15 am to LSUengineer12
quote:
ETA: I think If I were to refinance, I would choose a 15 year loan.
If you do refi my advise is look at the difference in interest rate between 15 year and 30 year. You can always pay more principal on a 30 year to finish paying in 15 so if the rate isn't very different, just go for the 30 year and pay an extra $400 (arbitrary number) a month toward principal.
Basically dont make the 15 year loan decision based off when you will pay off the loan because you can always pay more than the min on a 30 year. But if the rates much better for 15 do it.
I currently have 2 mortgages and one is a 15 year loan, but I got it at a super low rate so it was worth it. Just depends on the differences.
Posted on 7/9/18 at 8:16 am to baseballmind1212
Posted on 7/9/18 at 8:18 am to SouthOfSouth
Good point. I guess back when I bought it, 15 yr loan rates were considerably lower, but now with rates rising, there may not be much of a difference. Something worth noting.
ETA: Let's just say the rates are the same, is it worth re-financing just to rid the PMI cost. I guess then it boils down to additional closing costs vs $55/mo for the next however many years.
ETA: Let's just say the rates are the same, is it worth re-financing just to rid the PMI cost. I guess then it boils down to additional closing costs vs $55/mo for the next however many years.
This post was edited on 7/9/18 at 8:20 am
Posted on 7/9/18 at 8:29 am to LSUengineer12
quote:
ETA: Let's just say the rates are the same, is it worth re-financing just to rid the PMI cost. I guess then it boils down to additional closing costs vs $55/mo for the next however many years.
That's basically it. TVM of the closing costs vs the $55 a month. I'm not sure it would be worth it to refi just for the $55 a month unless you knew you were going to be in the house for a very long time. That's $660 a year of PMI and closing costs will be many multiples of that. Hard to make that argument if the rates are the same.
Posted on 7/9/18 at 8:55 am to LSUengineer12
One consideration for you is if you will be itemizing your taxes going forward. If you won't be itemizing due to new tax law (increased standard deduction), then for you, the mortgage is nothing but debt to be eliminated.
Posted on 7/9/18 at 9:27 am to Oenophile Brah
It's going to be very difficult for us to itemize with the standard married deduction at $24k.
Posted on 7/9/18 at 10:25 am to LSUengineer12
Yes refinance it if you can get rid of PMI and get a 15 year loan.
Do it today.
Do it today.
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