So there are three options available to me. I'm having a lot of trouble wrapping my brain around the opportunity costs associated with each option I'll just put them out as plainly as possible:
Option 1 (existing mortgage):
Rate: 4.00%
PMI: $100
PITI Payment: $1147
Fees: $0 (keeping the same mortgage)
Term: 30 years (29 remaining)
Pros: lower payment with no additional money tied up
Cons: Stuck with PMI. PMI is the worst.
Option 2:
Rate 3.75
PMI: $0
PITI Payment: 1428
Fees: $2783 rolled into new mortgage
Term: 15 years
Pros: No PMI, lower interest
Cons: Higher payment, fees
Option 3
Rate 2.75
PMI: $0
PITI Payment: 1160
Fees: $818 upfront
Term: 15 years
With option 3 I would have to liquidate 12000$ in Roth IRAs and 9k in 401k loans at 3.5% in order to get down to 80% LTV
Pros: Lowest interest, sameish payment, no PMI, lower fees
Cons: additional money to get below 80% would take money out of retirement accounts.
I can easily afford any of these payments, but I'm barely able to fill all my tax advantaged accounts right now, so I might have to take that extra 300$ a month out of payments to HSA/401k.
Is the opportunity cost of the extra 300$ a month payment worth it? Seems like it is if I can get rid of PMI.
Then the question is, is it worth it to take money out of retirement accounts in order to get below 80% to get that much better rate?
I'm leaning towards option 2 but if somebody could help me sort out all of the different variables I would appreciate it.