refi - what makes sense, any penfed experience?

[DK]

So I have been back and forth trying to figure out what to do with a refi. Seems penfed has the best rates but I am not sure which one to get, mainly debating between the 5/5 at 2.625, or 15/15 at 3.00. Anyone have a suggestion on which would be better? I like locking in a low rate for longer, but locking in a even lower rate for a shorter time, with no origination fees, is tempting too. It would probably cut the closing costs in half.

I also am hoping they do cash out refi, but does anyone know? I would like to merge my auto/student/mtg loan all together, to simplify payments, and increase cash flow.

So roughly right now I have:

mtg 155K - 900/month
auto 5K - 300/month
student 5K - 100/month.

So if it all works out that I can combine them, monthly costs would go from 1300 to 700...which would be pretty sweet.

Anyone know about how appraisals come back from them...I'm anywhere between 194K according to the taxman, and 250K according to zillow. (I'm guessing it would be somewhere in between, there is a fairly similar house going for 230K)

Thanks!

[Valhalla]

How long do you plan to live there?

That's the #1 question.  All else falls after that.

Personally I'd go for the longer mortgage with the guaranteed rate, because you can always pay off the mortgage earlier (and save on interest) if needed.

[aceyou]

I'd second the 15 year.  I just finished a refi a couple weeks ago to a 15 year myself. 

[DK]

Well how long I plan to live there is a bit up in the air, which is part of the reason I was leaning towards the 5/5. I've had some life changes recently, along with now having a remote work job - so technically now I can live anywhere I want in the US. Of course, I am a bit of a creature of habit so it's likely I might stay for a long time.

[DK]

Well I think I am leaning a bit more towards the 15/15, even at best case after 5 years the benefits start dwindling. Also I went with just a straight comparison between 'do nothing' and the 15/15, and the cashflow perspective pays off the fees and then some. I guess now it's more if they allow cash outs, and how much I will be appraised at. With fixed 3% for 15years, I would probably take out as much as I can, and invest any excess.