Should I refi and pay PMI?

[Anonymous]

Got a 30 year Mortgage @ 5.65% in 2008. Put down 20% (no PMI) for a 310k house and owe 248k on the mortgage. Skip to today and our house is estimated by zillow at 260k-270k. I'd like to refi the 233k I owe on our current mortgage into lower rate 30 year fixed, but I'm not sure if it would be worth it because I would probably have to pay some PMI. We are not looking long term for staying in this house and will hopefully be selling in 4-5 years.

What is a good financial decssion to make? Stay in current loan? 26 years left @ 5.65% or try to refi and
pay some PMI?

[Klesko]

Several factors to consider here.

If you are not planning on going FHA then your PMI will be based on your credit score. Also your closing cost.

If you bought the house for 310k and put 20% down and borrowed 248k at 5.65 then your payments on the loan is about $1431.

If you borrowed 233k at 3.5% your payment would be about $1047.

The different of $384 a month.

Let us know more information and can prob figure some closer to real numbers up.

[tooleman694]

Zillow is way way off. Id ask a local realtor for comps of the area.

[pizzadude]

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@tooleman694 wrote:

Zillow is way way off. Id ask a local realtor for comps of the area.

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+1. Another thing to consider is if PMI is tax deductible in the same way as mortgage interest. I believe that it is but you should do some checking around.

[Booner72]

PMI is but it was bc it is a temp law that was just extended and I don't know how long it will continue to be extended.

Source: Loan Officer

[pizzadude]

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@Booner72 wrote:
PMI is but it was bc it is a temp law that was just extended and I don't know how long it will continue to be extended.

Source: Loan Officer

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Cool ~ thanks for the update..... I thought that there were some pending changes on this.