Just wondering if the scenarios make any sense at all:
Refi into a 4% mortage from a 4.875% mortgage with any one of the following scenarios:
• Cash out, pay off $9k HELOC balance at 4.99%.
• Cash out, pay off $5k student loan at 4.625%.
• Cash out, pay off $7k Visa at 0% for 12 months (regardless, this is targeted to paid off in full before it goes to 12.99% so it's probably not a good candidate)
Home value is ~$420k and we owe $279k. No PMI or HOA. It's possible that we'll move in one year to a similarly priced home, so we'll need an available 20% down from the sale of current home to avoid PMI on the future home. Move will be made to a smaller home to get into a better school district. Intent is to be cost neutral on the move (save realtor fees).
I know that you pay more interest in the beginning of a new mortgage loan. But I can't get my head around how this plays into folding in debt at previously various interest rates.
