You decide to buy a home in January 2017 for $200,000 and finance it with a 15% downpayment and a 30 year fixed rate mortgage at 4.5%.
How much is your mortgage payment with the PMI if taxes are 75 Mills? When (how many months) does the PMI fall off of your loan if you call the bank at 80% LTV?
If interest rates fall to 4.25% when the PMI falls off of the loan and you decide to refinance the property with a new 30 year fixed rate mortgage what will be your payment and should you make this decision if the closing costs are $2000?