Posted on: 17th Aug, 2010 03:31 pm
i am having trouble deciding whether i should refinance my mortgage. i owe $309,000 and have 25 years left on a 30 year mortgage. my interest rate is 5.25 and i pay pmi. i don't know the value of my house but am guessing anywhere between $320,000-$350,000. i think i could get at least $340,000. my dilemma is should i refinance to a 20 year fixed at 4.125 or 10/1 arm 3.875, or should i just stay with my current mortgage? i do not have 20% equity because of the depreciation of my home's value. i will be in this house at least another 5 years. any help would be appreciated. sorry for the long post.
I will be in the house at LEAST another 5 years. Couldn't I qualify for a mortgage and just have to pay PMI again? My thinking is that if I refinance to a 20 year fixed, I would get rid of 5 years on my mortgage and my monthly payments would be very close to what I am paying now. My wife's and my credit is excellent and we gross over $175,000 combined annually.
Joe-What type of loan do you have? Conentional with PMI or FHA with MI?
Conventional with PMI
With rates where they are it is definitely worth looking into.
If you can easliy handle the payment with the lower ammortizations it's always a good move IMO.
If you can easliy handle the payment with the lower ammortizations it's always a good move IMO.
20 year fixed or 10/1 ARM?
Don't know anything about your financial situation but personally I'm always a fan of going with the lower ammortization if you can comfortably afford the payment. Also if you go back into an ARM you are starting back at 30 years again. Just my personal preference though.