Would you refi in my situation?

[martini]

Deleted numbers because I'm paranoid. Thanks everyone for your thoughts!

[aurora]

Keep in mind that you'll pay an extra year+ on your loan to save that $100/month.

I probably wouldn't refi to save .2%, especially since you're pretty close (8 months max) from being done with PMI as it is.

[laurensmomma]

Agree with PP. The cost to refinance will likely outweigh the savings, especially since you're only 8 months away from that 2 year mark.

[imojoebunny]

In this case, I don't think it is worth it. Your PMI is pretty low, it will go off soon, for a total cost of $480, which is a lot less than most refi's cost, even appraisals run a few hundred dollars. I would look into exactly what you need to do to have it dropped. You will likely need another appraisal, so I would be prepared to get that in as soon as possible, once you meet the 2 year mark. I have never had it where it was an automatic thing. The difference in rates doesn't sound like enough to offset the cost in my mind. We usually do it when the difference is over 1/2 point.

[madisen]

I would use dinkytown.com for the refi calculator. You can put your current loan details, cost to refi, new terms, and how long you would need to stay in the house to make the refi worth it.

Also it's not correct that you'd necessarily be adding a year or two to your loan. A lot of lenders can accommodate odd term loans like 28 or 29 years of that's what you want. You won't get any rate benefit from it like you would a 15yr loan for example but at least it wouldn't add interest to your complete payoff.

[imojoebunny]

Feb 14, 2016 17:57:47 GMT -5 madisen said:

I would use dinkytown.com for the refi calculator. You can put your current loan details, cost to refi, new terms, and how long you would need to stay in the house to make the refi worth it.

Also it's not correct that you'd necessarily be adding a year or two to your loan. A lot of lenders can accommodate odd term loans like 28 or 29 years of that's what you want. You won't get any rate benefit from it like you would a 15yr loan for example but at least it wouldn't add interest to your complete payoff.

Yes, but this limits your flexibility with zero benefit, which is what people are thinking of.  

To me, it makes no sense to have a 29 to 16 year loan, unless you get the associated rate decrease.  For our last home purchase, the 20 year rate was higher than the 30 year.  Nonsense, better to pay more on the 30 when you can,  than have the 20, with less flexibility. The 15 was slightly lower., but not compared to what we could do by investing the difference, after taxes.