“Sure, I could have done the Refinance”
Hey Joe,
I wondered if you could share your opinion with me on the PMI I’m paying on my loan. When I refinanced my credit was so-so but now my credit score is much higher. Would it be worth it to refinance again to get rid of the PMI? We’re not looking at selling anytime soon but may add-on. Nothing is on any definitive timeline. Not sure if the cost to refinance is worth it. I pay $106/month and only owe 152K on the house.
Stefanie
Stefanie
I absolutely would not refinance now as the current rate is higher than what you have now. Also, if you are planning an addition in 2-3 years, you would not recoup the closing costs in that time period.
I would recommend that once you have decided on the addition then that would be the time to refinance and get enough to do the renovations.
Joe
I can’t thank you enough. Always appreciate your advice. See you in a couple of years.
Will be sending my younger brother to you in a couple of months, once he has finished his schooling and starts his job.
Stefanie
Image courtesy of StuartMiles/freedigitalphotos.net
Interest rates have moved up over the last couple of months and most likely will continue the trend for a while, so spending money to refinance to avoid the monthly mortgage insurance isn’t a good idea in most cases. In this case it makes no sense as they are planning to put on an addition and will need to get the loan redone again. Now is not the right time.
