Is refinancing good for my case?

[Arian Cabrera Alvarez]

My question: Is refinance a good option to get rid of my PMI and lower the monthly payments. Could you please augment your answer, just to understand why yes or no?

Numbers below:

House price initially ($235K)  Principal (as of now): $212K Interest rate: 4.625%

Monthly payments (with escrow and PMI): $1740 PMI: $89 monthly

House price estimate now $250K~260K maybe more due to the market trending, just recently a similar house in the neighborhood got sold at $275K. Zillow estimate is $259K.

My current lender with my credit score said I could get a 2.9% interest rate (I may need to buy points, yes sorry I forgot to ask for the points) and keep 28 years as the term of the loan and that should save me $150 a month.

Fees for the refinance (you guys know more than me on this) could be around $4000~6000

Is refinance a good option? should I stay like this till I get to pay 20% of the loan? or ask for a house revaluation and get rid of the PMI?

Thanks in advance,

Regards,

Arian CA

[Soh Tanaka]

I would look at the closing cost closely. If you have an escrow, whatever you have there right now, you should get it back. Also, some of the $4-6k might be the money that goes towards the escrow, so you are not really paying (yet.) Also, it's possible you can skip a payment when you refinance. 

While this is just my viewpoint without knowing everything about your situation, my vote goes to refinancing, assuming your plan is to hold this property for years to come. 

If 2.9% is for an investment property, that's really crazy low.