House hack Refi FHA to Conventional

[Alex Waite]

Hello all,

I have been in a single family house hack for about 9 months and it has been very successful. My plan is to live in the property for 2 years minimum for tax purposes just in case I sell within the next 5 years. I could rent the whole house between 1,500 to 1,600.

Background: I currently have a FHA loan at 3.625% and my PITI is about $1,250. My balance currently is about $200,000. I talked with a mortgage officer and she said she could give me a below 3% rate and lower my payment by about $200. She also said I would get an escrow refund for a couple grand. I was not aware of this but must be a positive?

However, my question is the closing costs are 5-6k and my balance would go up to $205,000. Should I pay the closing costs out of pocket or finance the closing costs?

Thanks in advance!