All Forum Posts by: Justin Johnston

@Jeff Bridges thank you for the reply. I had looked into it in the past and there was a time period that needed to pass as well as an equity position beyond 20% that the mortgage company wanted me to have reached (I believe it was 25%) for PMI to drop. You bring up a great point, I will do some research and reach back out to my mortgage company then weigh the two options. Beyond what you had mentioned is there any other reason you could think of that it might not make more sense to refinance?

I have a condo I rent out that has great success with staying occupied I've had a zero percent vacancy rate on it since moving out and converting it to a rental three years ago. I bought it with 5% down as it was originally owner occupied and it currently has a 4.125% interest rate so all for principal, interest, insurance, taxes, and HOA I pay $1,942.38 per month, which is entirely covered by the rent paid by the tenants. It appears that I can refinance (no cash out) to an interest rate of 4.8% however with the remaining balance on the mortgage that I would be borrowing my total payment will drop to $1,787.00 per month and I will no longer have PMI.

Is this something I should do?