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No. of Recommendations: 1
It makes ABSOLUTE sense for you to refi now.

I finally contacted the Wells Fargo rep and asked about refinancing to a conventional loan. Here's what she offered me.

She checked on and said that my home's value was $123K, not $119K like I first told her. Back in 2008, my tax appraisal was the same, but the appraisal has declined about a thousand bucks a year each year since.

But she crunched the numbers based on's numbers, and yes, with a current mortgage balance of $95K, I'm below the 78% threshold to jettison mortgage insurance--barely.

So with that, she quoted me an interest rate of 3% on a 15-year fixed loan. On its own, it adds $20 per month to my payment, but I'm currently paying $40/month for mortgage insurance, so if insurance is out of the picture my payment would actually drop by $20 per month. Plus I kick off five years of payments altogether.

I would have to pay $467 out-of-pocket for a new appraisal and credit checks, and $2551 of closing costs would be rolled into the loan. I asked if adding all those closing costs would push me back above the 78% threshold, meaning that I wouldn't be able to drop mortgage insurance after all, and she said no.

She also said, as others did here on this board, that if the appraisal came in such that I was just barely over that 78% threshold that I could put the little bit on a credit card or somesuch and pay it off with that forty bucks a month savings.

So I'd like the board's opinions on all of that, please and thank you.
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