Backstory:
We moved in 06/08, original loan was 6.125%, payment was roughly $1800/month. We refinanced in 09/09 at 5.250%, payment is now $1676/month. We currently pay PMI.
We are planning to purchase a new home in the next 12-18 months and sell this current one.
Current Loan Info (30 year FHA, PMI, 5.250%):
We would be getting an appraisal done prior. Current comps have been selling anywhere from 250-270k. Ours is easily worth the higher end of that as we have done a lot of improvements.
Current Refinance options presented by mortgage consultant:
Option #1 (30 year Fixed, 95% of value, 4.750%):
Option #2 (30 year Fixed, 95% of value, 4.625%):
Option #3 (30 year Fixed, 90% of value, 4.750%):
When talking to him our goal was to get rid of PMI, lower payment, and keep loan payoff amount similar/same as current loan.
Things to consider:
1) We have to bring a little bit of money to the table to make this happen (all options under 2k).
2) We will get our current escrow balance back (roughly $600).
3) We won't have a mortgage payment the month of closing.
So is it worth it if we do plan to sell in 12-18 months. If we were in longer term, I would do it no problem. Help me decide if we should do it, and if so, which option makes the most sense.
THANKS!
We moved in 06/08, original loan was 6.125%, payment was roughly $1800/month. We refinanced in 09/09 at 5.250%, payment is now $1676/month. We currently pay PMI.
We are planning to purchase a new home in the next 12-18 months and sell this current one.
Current Loan Info (30 year FHA, PMI, 5.250%):
We would be getting an appraisal done prior. Current comps have been selling anywhere from 250-270k. Ours is easily worth the higher end of that as we have done a lot of improvements.
Current Refinance options presented by mortgage consultant:
Option #1 (30 year Fixed, 95% of value, 4.750%):
Option #2 (30 year Fixed, 95% of value, 4.625%):
Option #3 (30 year Fixed, 90% of value, 4.750%):
When talking to him our goal was to get rid of PMI, lower payment, and keep loan payoff amount similar/same as current loan.
Things to consider:
1) We have to bring a little bit of money to the table to make this happen (all options under 2k).
2) We will get our current escrow balance back (roughly $600).
3) We won't have a mortgage payment the month of closing.
So is it worth it if we do plan to sell in 12-18 months. If we were in longer term, I would do it no problem. Help me decide if we should do it, and if so, which option makes the most sense.
THANKS!