House re-fi

[panski master]

I have a 30 yr fixed @ 5 1/8 and was wondering what the rates are right now for a 20 and 30 year fixed rate. I have 22 years left and was wondering if I should refi or just try to pay a little more to principle every month. I'm still paying that stupid pmi insurance which sucks and I want to eliminate it. I owe 130,000 and I think I'm floating on the edge of that 20% where I can eliminate the pmi but with the way the housing market is I'm not sure if I can get rid of it. I live between st coud and the metro if that helps for house rates. Just wondering what kind of options are out there for me to look into.

Thanks!

[Scott K]

I am in about the exact same place as you, and I have thought the exact same thing. I will wait and see what the pros have to say.

[Fishinguy40]

My daughter is closing on a bank owned house later this month. She locked in at 3.75% on a 30 year FHA mortgage. So you can probably get a good rate and lower your payments.

The only issue you may have with the PMI is that house values have dropped...so what will yours appraise at and will it be at least 20% equity?

[Lip_Ripper Guy]

You should be able to get around 3.125% on a 15 year, and about 3.75% on a 30 year. Don't spend $350 on an appraisal unless you are certain your house will appraise for the needed value.

[Down Deep]

At the current rates a 2 plus percent savings will be substantial. If you can go 15 years. The banks are really picky about home value. The best thing to do is walkin and check out the terms.

[paceman]

Another thing to discuss is how long do you plan on being in that house. If for 5 plus years than try to refinance. If you plan onselling in the next few years than don't waste your money paying all the closing costs, fees....

[Biggerfish]

Do you belong to a credit union?

If not go join one and go through them....Closing costs are hardly nothing.

I refi'ed 3 times over the past few years and the used them the last time and they are easy to deal with.

[chasineyes]

I believe another option if your on the edge of the 20% would be to pull some money out of your 401K to reach that 20%. No sense starting PMI all over again since you now HAVE TO HAVE IT for 5 years!!!!

Depending on your age, I would pull as much out of 401k to pay down the mortgage as you can. I would much rather have my home paid for in 10 years than ride this stupid market which has NO direction....