Contact a local attorney or better, enroll in a pre-paid legal service so you will be able to contact an attorney anytime an issue or question arises.

For the first options it's FHA with DPA and my total cash I need to put upfront is $ $7490 ( down payment, closing costs, prepaid escrow reserves).

In general it's a 50% LTV loan, fully amortized over a period up to 15 years, and can be pre-paid anytime without penalty.Send me a PM if you'd like more information.Continued success!

Shouldn't the mortgagor refund all prepaid property tax and insurance premiums to the homeowner on the day the mortgage is 'satisfied' ? 

*We are looking for the options which would also have the least total and out-of-pocket expenses*Also, I believe I read that I can file to get a refund on some of the pre-paid PMI, is that true?

Hey Tj Hock I did something a little similar out here in Washington, and I called it "Pre-paid maintenance" and it included 2 hours of maintenance.

FHA requires a ton of pre-paid PMI in addition to the monthly PMI.

The owner was in financial trouble and re-opened negotiations and got pre-paid of a 30 year lease, at a reduced rate of course.

Maybe even use PrePaid Legal? 

HI Chad,Some banks like the one I work at offer a product that is tailored to your needs, such as 23 year fixed mortgage product instead of restarting your 30 year time clock on your current 23 year remaining note.When you ask the question of whether its worth it to refinance with a 1% rate reduction, it depends on how much costs your paying to close as you may want to consider your bigger picture perspective or have someone who is going to have the knowledge and patience to explain those options to you.I've had some clients who refinance with as low as .125 to .25% rate reduction but in those instances I provided them a lender credit so large they in essence had no out of pocket at all and in some cases were able to skip a month or two in payments (lender credit issued covered all closing, impounds, prepaids, etc).so 1% savings is awesome but if it costs 10k it may not be worth it if you're going to be out of the home in 1-2 years, however if you were in the home for 30 years you'd have time to recoop your savings slowly over an extended period of time and possibly make back all your money you spent upfront. so like all answers in life, it depends.