Refinancing a Primary Mortgage at 20% LTV

[Joe Kessler]

Hi all,

I'm trying to wrap my head around what to do with my current primary mortgage.  My wife and I have decided to pay down some debt while real estate prices around us continue to skyrocket and good deals remain so few and far between in our area.  I would think that, by the end of this year, we will owe around $75k on our home currently valued at around $350k.  Our current mortgage payment is around $1275.   If we refinance, I think I can get our payment down to around $400 per month, at which point the average monthly cashflow from our existing rental can take care of our primary mortgage and we'll have virtually no house payment (except for taxes and insurance).  

My question is, assuming we are not willing to fork over an additional 75k to close the mortgage out, do lenders offer refinanced mortgage packages for such a small amount of loan to value?   Also, is there cheaper money out there since the amount we'd be seeking (75k) is within the realm of some consumer loans? 

Thanks in advance for any insights.