Posted on: 11th Aug, 2010 02:26 pm
i have 27 years left on a 30 year fixed at 6.25%. my principle balance is $197,000. my house was just appraised for $230,000 so i do not qualify to refinance without paying pmi? i will live in this house for 20 + years- should i refinance and pay the pmi for the short term to get the lower rate for the long term?
Yes you should absolutely refinance. If you want to stay away from mortgage insurance at that LTV you may want to look at LPMI (lender paid mortgage insurance). It comes with a little higher interest rate but starting at 6.25% you can absolutely still benefit from refinancing.