Mortgage refinancing help

[clones_jer]

Anyone experienced in the ins and outs of refinancing, specifically and 80/20 type mortgage?

Here are some of the particulars:

80: 5.75% until 2010 - remaining balance: $85,000
20: 6.15% variable - remaining balance: $10,000

Estimated appraised (through an area lender): $118k

Percentage of overall loan paid off: ~ 12%

My main question has to do with paying points and PMI. What is the best way to avoid PMI with the new loan, or at least minimize it? Also, the variable rate has been kind too me, as its only been variable the last year (about the time prime plummeted) but I've still been heavily focused on paying it off.

Credit score and income is not a problem as far as qualifying for rates.

Anybody want to help a dummy out?

 

[2forISU]

To get rid of PMI you need to have 20% down on the house. PMI is tax deductible.

 

[clones_jer]

To get rid of PMI you need to have 20% down on the house. PMI is tax deductible.

yeah, sorry maybe I didn't make that clear, I'm aware of what PMI is, but do I do better money wise to stay with the current rate until I get to 20% off or refinance and take the PMI hit for a little while?

Is it more a question of what risk I'm willing to assume or is there real money to be gained one way or the other?

 

[mcnemat]

Take the PMI hit, it is about the same my banker and I worked it out both ways. I locked in at 4.65 for 30yr on my refi.

 

[CloneLawman]

PMI IS deductible on the Schedule A, if you itemize, but begins phasing out at $100K AGI (MFJ) and is fully phased out at AGI greater than $109K.

 

[clones_jer]

PMI IS deductible on the Schedule A, if you itemize, but begins phasing out at $100K AGI (MFJ) and is fully phased out at AGI greater than $109K.

dumb people language please

EDIT .. ok, so basically its not as deductible if you make over $100K ... and not at all above $109K?

Still not sure what MFJ is.

 

[tidbit]

MFJ= Married Filing Joint tax return

 

[Cyclonepride]

Michael ****ing Jordan?