Refi not looking good

I have this bee in my bonnet to refi the house, drop my PMI (private mortgage insurance) and get an equity line to do more work on the house. Well it seems that isn’t going to happen, at least not now. I needed to wait 6 months before,doing any restructuring and pretty much on the day I was eligible (for some new loans, some make you wait 12 months), the interest rates started going up.


Mortgage rate graph


Bugger, so what that means is I may come out ahead for a few years by dropping the PMI but in the long term paying a higher interest will cost me far more than I save dropping the PMI. The FHA loan I currently have is better than the current ones and again refinancing doesn’t make sense when what you have is better. The possibility of an equity line is still a possibility but perhaps for later in the year, they are still just starting to come back on the market…..

I think I sound very smart and knowledgeable about all of this and it is only because my mortgage broker not only just explained all if it to me he also put it in a PDF. If you need a good mortgage guy I recommend John Thompson and his team at http://tgloans.com/.

So sorta a bummer but now I know it’s time to start watching the interest rate numbers like a hawk just in case there is a dip.

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