Author Topic: Mortgage guidance requested  (Read 895 times)

Supernova_Jones

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Mortgage guidance requested
« on: October 24, 2016, 02:56:12 PM »
Hey all - first time post here. Hope I don't violate the forum etiquette. Please reprimand away if I do.

I'm in need of some guidance on my way to being debt free. After paying off all other debt (student loans, car payments, etc) the only thing left for my wife and I to tackle is our mortgage.

Here's the details:
  • Original Loan: $228,000, 30-year fixed @ 4.125%
    Current Status: $195,437, 27-years, 4 months remaining, still @ 4.125%
    Current Mortgage: $1318/month (includes HI, PMI, and escrow for property taxes)


We really want to get this paid off ASAP. The first thing we want to do is get rid of PMI, but looking for the best advice in terms of how to tackle this challenge.

Should we refi?
How much extra should we pay a month and how would that impact our mortgage?

Thanks!

Jack

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Re: Mortgage guidance requested
« Reply #1 on: October 24, 2016, 03:13:53 PM »
You should be able to get rid of PMI at ~80% loan-to-value. How much is the house worth now?

FYI, paying off your mortgage if the interest rate is low enough is not mathematically optimal. 4.125% + PMI is probably worth paying off, but without the PMI -- and especially if you refi'd to <4% -- it would no longer be worth it and you should invest instead of making extra payments to principal. (Note that most of the rest of the thread will be people arguing over this point, as "pay off mortgage vs. invest" is almost a holy war around here.)

Supernova_Jones

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Re: Mortgage guidance requested
« Reply #2 on: October 24, 2016, 03:19:53 PM »
I'm guessing the house is worth somewhere in the neighborhood of 245-250.

Is it worth spending extra on an appraisal to see how close we are?

Another Reader

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Re: Mortgage guidance requested
« Reply #3 on: October 24, 2016, 03:32:48 PM »
15 years, 2.5 to 2.75 percent rate and APR.  Try aimloan.com.  Put in your information and get back a lot of options.  Aimloan is a low cost, no frills originator (lender).