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Is it worth refinancing?

My wife and I purchased a house in November of 2012. The purchase price was 309,000. After closing fees and our down payment we ultimately ended up with a home loan of 285,000 at a interest rate of 3.25%. As first time home buyers we went with an FHA loan so we could get the lower rate, but with that lower rate came Mortgage Insurance, about $300 a month. Over the past year our house has gone up considerably in street value. With this value increase we technically own more that 20% of the house which is the line for mortgage insurance. I am wondering if it is worth refinancing to get out of the mortgage insurance that we will have to carry for the next 4 years, or keep the low rate and put up with the insurance for the next few years? I think I already know the answer which would be to stick it out for the low rate but just wanted a second or third opinion. Thank you!
  • February 23 - US
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Answers (6)

I would like to put some hard detailed numbers together for you and look at your break even point. Also, I would like to chat with you about some other options that might interest you. 

Please give me a call so we can discuss. I offer free advice and help. 

I look forward to talking to you.

Thanks.
  • February 27
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off the top of my head, i do believe that you should look at the NUMBERS....it seems like it would behoove you in the short term for sure....good luck
  • February 27
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Hi there, when I run preliminary numbers on what you described above, I think there is a good chance that you benefit from a refinance out of the FHA product. If you would like to discuss the specifics, I would be happy to get into more details with you.

  • February 26
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It is definitely a good idea to compare your options and explore different refinancing routes to see what best fits you and helps saves you money. You would need to speak with a lender to compare these options and benefits to get a good idea of these comparisons. So the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • February 26
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You definitely need to look at this side-by-side. Current loan vs. your other options. I would also recommend throwing in a 20 or 15 into the mix for comparison. Even if the appraised value came in just shy of the 20% equity, you could always consider a conventional loan with a small amount of PMI. Nothing will compare to the rate you have, but keep in mind that removal of the FHA MIP is not automatic until you reach an LTV of 78%.
  • February 23
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I think you should look at on paper to decide if it is worth refinancing.  You have a great rate and to hold out to see if rate go lower is a gamble.  Get a couple of estimates it what I would suggest you get to see for yourself if it is worth it or not.
  • February 23
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