Posted on: 09th Apr, 2009 08:54 pm
if i refinance now to take advantage of the low interest rates, i run the risk of losing equity in my home and having to pay pmi. should i do it?
i currently have approx 21.5% equity in my home (according to the appraisal price two years ago when we bought the house). i have a 30yr fixed w/ no pmi @ 6.5% apr. if i refinance to a low 5% apr i will need a new appraisal. chances are the new appraisal will drop the value of my home and i will be required to pay pmi.
i will still save approx $150 per month (includes pmi) over my current payment. i am having a tough time dealing with the principal of paying pmi vs. the monthly savings. i especially don't want to pay pmi since i am not paying it now.
any suggestions?
i currently have approx 21.5% equity in my home (according to the appraisal price two years ago when we bought the house). i have a 30yr fixed w/ no pmi @ 6.5% apr. if i refinance to a low 5% apr i will need a new appraisal. chances are the new appraisal will drop the value of my home and i will be required to pay pmi.
i will still save approx $150 per month (includes pmi) over my current payment. i am having a tough time dealing with the principal of paying pmi vs. the monthly savings. i especially don't want to pay pmi since i am not paying it now.
any suggestions?
My last post didn't register?!
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