All Forum Posts by: Ashley Pimsner

Hi Jerry,

Here is a different way to look at your question using your original loan amount and ex A.

Currently you owe $79,277 and your payment is $597.49 but in 31 months (sept 2017) your new payment will be $519.49 when your mi drops off. Btw can you have your house reappraised and simply get mi dropped?

The new loan amount in ex A will be $ 83,200 which is $3,923 higher with a new payment of $515.26 which saves you $82.23 a month however mi is only $78 and possibly deductible.

To recapture your cost of higher loan amount of $3923/82.23 it would take 47.7 months or almost 4 years to recapture your costs of new loan.

Currently you only have 27 years left on loan and if you refi you hit the reset button and go backwards to a brand new 30 year loan.

Let's not forget your mi will drop off in only 31 months which 27 months earlier than your ability to recapture costs of higher new loan amount.

New payment with refi is $515.26 and new payment after mi drops off is $519.49 a difference of only $4.23. 

Does it really make sense to extend your loan term with refi and add $3923 to your loan balance for a measly $4.23?

Check with your accountant to see if you meet the income requirements for deducting your mi which seems to be the main reason you are considering a refi, I would bet since you were a first time home buyer you do, so again if you can deduct mi why even bother considering a refi?

My humble conclusion is that you are better off NOT doing a refi because mi drops off before you recapture refi costs, you don't extend the term of the loan, and most likely can deduct mi.

Hope that is helpful.

Hi Brie,

Please add me to monthly meetup email list in Chicago.

Best,

Ashley

[email protected]

I would to attend this meeting as a first timer and Dec 2nd would work.

Please post time and place when able.

Warm regards,

Ashley

Hi Brie,

You might consider the contact below as he used to provide snow removal at our condo complex in Old Town when I was Board President. I don't know minimum number of units but it might be worth a try...good luck!