Author Topic: Refinancing, good or bad?  (Read 1115 times)

Logichronox

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Refinancing, good or bad?
« on: March 07, 2016, 09:40:46 AM »
Hello, I bought a house a few years ago with a USDA loan, 0% down (don't punch me, I'm new at this and didn't know better!).  I'm now getting my financial house in order, so to speak, and will be out of debt on everything but the mortgage this month.  My USDA loan has a 3.75% interest rate, and the internet suggests my house may be worth about $120k more than the sale price.  Is it a good idea or a bad one to attempt to refinance to a conventional loan, since with the USDA, I'll be paying PMI for the life of the loan (unless I misunderstood)?  I don't know if this is anything I should even be considering, and searching Google's not a lot of help.  My credit score was in the low 700s, last time I checked it.  I'm planning to stay here a minimum of 3 more years, could conceivably be longer.  I currently owe about $139k on the house, it was listed for $147,500 in 2012 (and with 0% down I rolled in fees, I think about $5k), so my total loan at the time was ...about $152,500?  I recognize that it's shameful that I don't even know what the final purchase price was, but this is how I learn, apparently.  Please, advice or suggestions.

ShoulderThingThatGoesUp

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Re: Refinancing, good or bad?
« Reply #1 on: March 07, 2016, 10:36:30 AM »
This is just a spreadsheet problem, but we need to know how much it will cost you to refinance, what the new rate will be, and how much you're paying in PMI.

Logichronox

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Re: Refinancing, good or bad?
« Reply #2 on: March 07, 2016, 04:42:31 PM »
I don't know the answers to any of those things--I haven't started shopping around for another loan yet, but I'll find out and then repost.  Thank you.