Am currently in a condo with mortgage at a rate of 5.875%, bought four years ago at 160k, 20% down, financed 130k. Currently own ~110k. Base payment is 780$, taxes come to 127$ per month. For the last approximately three years I have been paying down principle with an extra 290$ per month, for a total monthly payment of 1200$. This puts my payed off date at around 12 years, 3 months from now.
I got the below quotes for a refi into a 15 year loan on the remaining 110k.
a) 3.715% APR, monthly payment of 793$, 1400$ cash out of pocket at closing
b) 3.966% APR, monthly payment of 806$, 940$ cash out of pocket at closing
c) 4.216% APR, monthly payment of 820$, -150$ cash out of pocket at closing
Given a 1200$/month payment (and same taxes) this gives pay off dates of (in years from now):
a) 10y, 3m
b) 10y, 5m
c) 10y, 7m
Complicating factor is that I dont know how much longer I will be in the condo. I will likely move in with my girlfriend in less than 6 months. And my mom recently moved in with me from across the country after a job loss, she likes the condo well enough but would really like a garage. Homes with garages can be bought in the 160's around here. I have been thinking that I would keep the condo long enough for her to get settled at bit then look into buying a house for her, and presumably I would be living with gf sometime around then.
I really have no interest in renting the conto to a 3rd party, condo board might not like this anyway, but could probably get over 1200$/mon. And if I were to buy elsewhere I would want to use the equity as part of a down payment. Am maxing out the 401k and Roth IRA + saving in taxable accounts. I have not refi-ed earlier because I thought I would have moved by now and the differences never seemed worth it before.
Condo dues are 150$/mon. I could with no effort up my monthly payments to 1500$. Condo is probably worth ~150k today-really am not sure, have seen numbers all over the place.
I guess the basic question is, is paying 1400$ to refinance worth it for the off chance I will keep the condo for more than a few years? I really hate paying 5.875% when I could get much lower. Also I am afraid that I am way over analyzing all this. Any and all thoughts are welcome. -Thanks.