Refi out of VA Loan or not
I am looking for any and all advice to my situation;
Primary question is whether or not to refi out of my current VA loan in order to re-establish my VA eligibility for a future purchase or not. If so, what mortgage option to use. Overall intent would be to regain the leverage of a VA loan in a future location/purchase.
Details:
Primary residence, $325K loan, home value est at $45, VA 30 year fixed at 3.75%. I would turn this home into rental when I depart (I am still active duty military and plan to move summer 2017).
Mortgage options with ~95% LTV:
30 year fix at higher rate (with points/fees) increases payment ~$50. I would about break even on rental income vs expenses.
5/5 ARM at about same rate (with points/fees) decrease payment ~$80. I would be positive less than $100 each month.
30 year FHA much lower rate (with point/fees/PMI)
Some concerns:
-paying appraisal fee and home coming in under value
-paying closing costs or rolling into loan, either way adding expenses
Open to your thoughts. Thanks.
joe