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I agree with the would be trading up to a higher rate and incurring more expense (closing costs and interest).

Using a mortgage calculator, rolling the $12k into a mortgage at 8% over 15 years will cost you about $8600 in interest, which is pretty steep.

I will assume that the $300 expense for getting rid of the PMI is for an appraisal of your property, which is pretty normal. Even so, that will pay for itself in the first year, using your figures.

Since you are asking, I would bite the bullet and work at paying off the credit card debt. By my figures, it would take about 5 years paying around $220 per month at 3.9% to do it. Thats a lot less interest (about $1200) to pay.

One last question......3.9% until paid?! Where can I get a card like that?

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