Refinance 30 year mortgage to 15 - Advice wanted

[PHOEN$X]

http://finance.yahoo.com/news/best-financial-decision-paying-off-225238128.html

I fall in with the "under 55" crowd who think that investing heavily in my retirement savings has been my best financial decision. The growth alone in my 401k could pay off my mortgage right now, and in 20-30 years will probably be able to buy me 4-5 houses.

 

[docjohn]

do you guys know for sure that the incidence of 15 yr refi's is increased over time?

 

[steveny]

do you guys know for sure that the incidence of 15 yr refi's is increased over time?

Yes from data I've reviewed, from listening to friends and family, and from conversations with a few people I know who work at lending institutions, one is the president of the credit union. However that's really only a small portion of the total picture as it only is relevant to my specific area. PVMike would be a better resource for national numbers. He knows finance backwards and forwards. It's safe to say that the difference between a 15 and 30 year note here in this area of the country is negligible because the price of houses is so low.

 

[PHOEN$X]

From: http://www.csmonitor.com/Business/2013/0128/Americans-now-love-15-year-fixed-mortgages

Record-low rates are helping transform the 15-year mortgage from a rarely used instrument into a popular option, especially for refinancers. In November, 23 percent of refinance applications were for 15-year loans, according to the Mortgage Bankers Association. That's up 51 percent from a year earlier.

30 year mortgages are still more popular, however.

Regardless, I don't know too many people who stay in their homes for even 10 years, so the longevity of these mortgages may not be all that relevant.

 

[PghMiller]

You won't get a partial refund of the PMI you paid, because you would have to refinance within the first 3years to receive any refund.

15 year conventional for sure, rates are so low you have to get out of your 5%rate!

You'll have the Conventional monthly PMI temporarily until you pay your balance down below 80%, but then you can get it removed. Using the balance you mentioned and the appraised value you estimated, you should only have to wait about 1.5 years to remove the PMI.

PM me if you want to discuss more... I have my own mortgage company. 2.625% isn't the lowest rate you could get.