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Originally Posted by VictorBurek
OP was talking about a 30 year fixed. Today's par rate on a 15 year fixed rate is 4.375%.
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Here's what I wrote:
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I would strongly suggest that, as soon as you are able, get your principle paid down to 80% and refinance. Go with a 15-year mortgage.Get a much better interest rate. Lose the PMI. You'll only increase your P&I payment by a little over $100 per month, but you'll actually be able to make progress in paying off the loan.
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Here's what you wrote - having quoted my post:
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Let me correct a couple mistakes from Omaha. Nothing personal.
First, the upfront mortgage insurance on FHA loans is now 1.75% and no longer 1.50%.
Current rates for a 30 year conventional rate mortgages are no where near 1/2 percent lower, they are today at 4.875%. I think Provident might be 4.75%.
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As I said, going with a 15-year mortgage is going to cost him VERY LITTLE MORE than that 30-year screw job from FHA, and it's going to pay big dividends very quickly. Plus, I'd have to say that almost 1% lower APR is pretty significant.
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