I’m here looking for advice before doing anything.
First: We have a short sale on record from back in 2015. We did a short sale to move into this current home. That was all.
Second: We purchased this home back in 2015 – FHA loan with PMI. Interest rate: 3.75 Cannot get rid of PMI unless you refinance. This is an FHA not conventional loan.
We don’t plan on moving. This will be our home from now on. We love the location.
The thing is that we cannot refinance until 2020. By then, I think interest rates will still hover around 4% or so. I could be wrong. And we would have paid off about 5 years off the mortgage. We have a jumbo loan.
Does it make sense to pay closing cost, and refinance to a higher rate just to get rid of PMI?
Or should we keep current mortgage rate and pay down balance as quick as possible? Plan is to pay off mortgage within 5-7 years.
Side note: We are saving 50% of income. We are doing great. Just the PMI we’re wanting to go away.
Any advice would be great.