The VA Funding Fee is basically the VA's version of PMI. If your equity position is at less than 80% LTV, then you should just go conventional and you'll have no VA Funding Fee.

It's been so long since I was in the business, but 20 years ago, if you refi'ed an FHA into another FHA loan, you usually got a partial refund of your upfront MIP (gov't. version of PMI). Can't remember if that also applied to VA loans.

But if there are no other fees and you're dropping your rate by 50 bps, do the math. Divide $1700 by your monthly payment reduction. If you stay in the house more than that number of months, you're ahead every day thereafter.

quote:

Originally posted by Kraquin:

quote:

Originally posted by 1s1k:
Refinance for 15 and keep your payment the same. The fed dropped the prime so home mortgages will drop also. I would shop around before just saying yes to the first offer because it’s easy.

Right. Bite the bullet shop around and do 15. You'll thank yourself later.

100%. Human nature has proven it over and over that it works way better than taking out a 30 year and treating it like a 15 year.

Not to mention you will get an even better interest rate on a 15 year loan.