I’m in a situation right now where I can refinance my home to get a lower interest rate and remove PMI. My current loan is a 30yr fixed @ 4.2%, and my monthly mortgage is $ 1624/mo. My new re-fi loan could either be a 30yr loan @ 3.625% no points which would lower my mortgage payment to $ 983/mo. A possible savings of around $ 400+/mo. once taxes are included. Or a 15yr fixed loan @ 2.75% with 0-points. My mortgage would be $ 1463.
I was really convinced that the route to go was to refi for 15yrs and pay off my mortgage faster, and have no house payment once I retired (43yrs old now). However, after much thinking, there’s a great possibility that we could sell our home. The main reason we would sell our home would be to get into a one story vs. the two story home we have now. Its all a matter of preference. We love our current home, but if the market is good, and we have an option to buy a single story home and matches are needs, then why not? So, would it make sense to refi for 30yrs, remove the PMI, and take advantage of all those savings? Why would I refi for 15yrs, save less than $ 200/mo if I planned to sell? I’m curious what everyone’s thoughts are and what the best ideal solution is for me. Thank you all in advance!