Would you refinance NOW or WAIT?

[Joaquin Camarasa]

I bought this property with a friend 3 years ago with an FHA loan 4.2% interest rate.

We have been househacking the property for 3 years. I moved out to the DMV area but my friend is still househacking it.

We bought it for 315k and the appraisal would come somewhere between 340k to 350k now. That means we are not still reaching the 20% equity. We would have to bring about 15 -20k each to refinance.

Why it might be a good time to REFI?

1) I want to get rid of the PMI by getting a conventional loan.

2) There are indicators there will be a slowdown on the economy on the near future. (House pricedrop?)

3)This would be the safe option to play in case there is a crisis and rents lower a bit.

Why it might be a better option to wait some months?

1) Interest rates might drop more.

2) There might not be a price drop and the house keeps appreciating so I could use my cash now to invest.

I am going to start to talk to lenders to see how the whole picture would look but wanted to ask for your opinion first.

What would YOU do?

Extra info: Monthly cashflow right now is $400

with a refi I think I would be somewhere around the $800 - $900.