Hey MMMer's
So, here is the quick rundown on my situation.
Looking to refinance my acreage along with my student loan balance. I have enough equity to cover my entire student loan amount, but I have a couple weird things that are skewing my decision making abilities.
I owe 56k on my house and 47k in student loans. House is valued at about 130k.
Current payments are $650 towards my mortgage and escrow, $340 towards my student loans. As of April, that student loan payment increases to about $550 a month (as we no longer will qualify for income based repayments due to my wife not being in school anymore, and having dual income).
So, I can refinance at 3.875% for 20 years, fees are about $2,500 to do this. Payment goes down to something like $762 a month, if I'm remember correctly. So, that's $300 cheaper than now, $500 cheaper when my payments go up. But, here is my issue. We currently have our acreage listed for sale, that contract ends Feb 24th, and we are debating what we are going to do if it doesn't sell.
If we take it off the market, my decision is easy. Refinance, save the difference, and get on with our lives. However, in our market, which is small towns, population under 1000, and rare to find a good buyer. So, do I refinance anyways, risk losing the 2500 in fees if our house sells, or not do it, pay the extra amounts, and not refinance?
We have no other debt, but will need a vehicle replaced soon as baby #2 is on the way.
Thoughts??