I bought a duplex back in the summer of 2014. I didn't have a whole ton of cash available, (not really mustachian yet and I really wanted a house) so I got an FHA loan with PMI for the life of the loan. Not quite a year later, the FHA PMI rules changed, so I did an FHA streamline refi to cut my PMI by $100/month. That cost $3800 for the closing costs, which was a ~38 month ROI. Fast forward to now (just over a year), and my home value has shot up. I bought at $254,000 and now my Zillow estimate is $334,000. With a balance of just under $245,000, my LTV is 73%. I’m not sure what an actual appraisal is going to show since there’s not too many Duplex comps, but if its <75%, I can refi out of PMI altogether for a savings of another $80/month.
My second reason for wanting to refi, besides the potential savings is that I’d like to move out of the duplex and rent both sides sometime in the next year or two, and the FHA loan is an owner occupied loan. It might be hard to get a second mortgage if I’ve got an open owner-occupied loan on my report. Lastly, the interest rates are pretty damn low right now, and I doubt they’ll go much lower. So I guess, I’d ask, would you Mustachians refi if you were in my position? Would you wait until I actually move? If you were going to refi, who would you go with to get an investment property loan?