should i refi or not?

My current loan amt is 359,000 at a interest rate of 6.25% fixed interest only.
probable new loan is 316,000 borrowed 4.875 with a cost of $8500. My question really is: The apprasal is short due to no equity. Should i put $43,000 down to refi, so i wouldn’t have to pay pmi? Pmi cost is $100 month? I have great credit great job and money in the bank? I figure i might as well pay down the house to save on pmi, or should i use that $43,000 to use for better use? Please help answer my question

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3 Responses to 'should i refi or not?'

1. anaise - July 19th, 2010 at 8:47 pm

   I always look at paying for a house with the fact that one day I may want to sell it. Therefore, why would I put more money down if I intent to make changes later on. Then again, are you intending to stay in the house forever?

2. David M - July 22nd, 2010 at 6:42 pm

   Paying down debt is the best and safest investment one can make today. Your current mortgage is at 6.25%? Where else can you get that kind of guaranteed rate? Nowhere. And moving from a 6.25% rate to a 4.875% rate is a no-brainer even if you have to come up with $43,000. What’s that $43,000 earning? 6.25%? Even 4.875%? I say go for it. I paid off my mortgage early last year. That served me much better than investing it in the stock market.

3. Bedford S - July 23rd, 2010 at 8:51 pm

   refinance at lower rate and pay down so you don’t have to pay pmi. If you are a veteran, VA loans don’t require an PMI and have same rate as FHA.

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