Should I refi my FHA loan?

[Mike Provencher]

I have a duplex that I live in and rent the other side.  

I got in with a 3.5% FHA loan which has mortgage insurance on it.

My loan balance is about $165,900 after 3 years. Market value is likely $210K.  

I just got an estimate on a refi and it looks like it would save me $148, but it would push my loan amount to $174K and back to 30 years.  

It seems like a dumb idea to refi...as it would take me 50 months to get payback for this. 

Should I just suck it up and keep paying the mortgage ins every month? 

Thanks for your thoughts on this. 

Mike

[Tyler Rowland]

@Mike Provencher Those #'s look great!  Another way to look at it is to see how long it would take to pay off the loan if you refinanced and applied your savings to the loan.  Even though you are adding 3 years to your current loan by refinancing; if you applied the $148 of savings to the principle of the refinanced loan, you would pay off the the loan in 24 years instead of 27.  Without changing your current life style or rent numbers.  Extra Mortgage Payments

It all depends on your goals like Eli Schwartz was saying. I think that this going to be a great refinance that will get you better cash flow, or speed up the repayment period.  Win Win on this one!