Posted on: 17th Jul, 2010 02:30 pm
we have 30 year fha loan at 6%. we financed $86,600. we have owned the home for 8 years and have done major renovations with cash. still paying a pmi of $350.00 per year (can't get rid of until loan amt is 20% less mortgage). home is on the market for $120,000 and not selling. we are thinking either a) wait and sell... might take another year. b) refinance 15 yrs. keep and rent out pay extra and pay off in 11 years for another income. c) refinance include the only other debt we have (our car $10,400) and keep, rent and pay extra. we are wanting to relocate in the next 8 months and possibly build another home. we are both self employeed now. so would it be easier to do a streamline refinance? should we refinance at all?
As you're planning to move out of the property and build a new property elsewhere, it won't be a good option to refinance the loan. You won't be able to able to offset the costs that you pay while closing. In my opinion, you should lower the the sale price of the property and then list it in the market. It may help you get buyers for your property.