We received our application and paperwork to refinance our home this weekend. The news was even better than I had expected as they are dropping our PMI from nearly $60 per month to less than $18.
By time all is said and done, with the lower interest rate, lower PMI, and lower taxes, as well as a longer mortgage term, we will be saving about $225 a month, which will initially be applied directly to our credit cards and later will be either saved or applied towards principle. It all depends what is going on with the housing market when that time comes. If we're staying put, we'll need to pay five years off our loan. If we're leaving, we'll be saving towards a 20% downpayment to prevent PMI on the next home.
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