How soon is too soon to refinance

[Karen Jackson]

Hey BP!

I have a question. How soon is too soon to refinance. I have a rental property that I've had for 3 Years. I Which I'm currently paying $2700 per month on. Which includes food insurance, home insurance, and PMI. I recently got offered a chance to refinance out of this FHA into a conventional and to get rid of the PMI Insuance which can save me at least $300 per month. My current interest rate is 3.5. I was quoted at 3,8. Does It make sense to do this refi right now? Just curious because I was talking with a relative that I'm RE and she mentioned that it's way too early to start refinancing.

Any thoughts? Thanks!!

[Jim Blackburn]

@Karen Jackson

Would you like to keep the $300/mo FHA mortgage insurance forever?

Does it make sense to go through the process of removing the $300/mo mortgage insurance while interest rates hit are at their 3 year bottom or wait for rates to go back up before refinancing? 

Are you planning to keep this property for 2 years or is there a 50% or greater chance that you may sell it and use the equity to purchase another property? 

Is this property in a romantic area that will attract renters for the next 10-15 years -or- is it in a less desirable area that could cause you headache to rent it out?

Jim