Quote:
Originally Posted by Savageenterprise
I locked in at 4.125% on my mortgage back in July of 17' which was a fantastic rate at the time. Unfortunately, I had to/have been paying PMI of $100 per month since we did not have 20% to put down on the house due to the fact we needed a lot of cash to do some renovations.
Because home values have risen tremendously, not to mention all the work I've put into my house, my home is now worth much more than I paid. In current talks with my mortgage broker (same guy i used initially) and essentially I can get a rate of 3.25% on a cash out refi. Pull almost 50k cash out of the house while still retaining over 20% equity which means I can drop the PMI.
Because of the difference in the mortgage rate plus dropping the PMI, my monthly payment will drop about $250 per month despite having a larger mortgage balance. Even a reset of my mortgage going back to 30 years fixed and the fees for closing won't even be close to the amount of $$$ I'll save over the rest of the term with a rate almost a full point lower than I'm currently locked in at.
Sounds like a win win to my ears. Aside from the fact that I could actually use the money and plan to move forward regardless, am I missing something here?
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Have you checked to see what it looks like if you don’t take the cash out and instead refi to a 15- or 20- year term?