# Mortgage and pmi question how to calculate a refi ????

I bought a house back when I had poor credit , no down payment and had to buy PMI , I now have 829 credit score

This is an FHA loan so the PMI cannot be removed now that I have over %20 equity

I have a current rate of %3.375, I think this is a great rate but wonder if I go for a slight increase in the rate %3.8??? would be a better deal in the long run

How can I figure this out??? , I am not sure what numbers to compare and all that

Thanks !
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You need to get a mortgage calculator - lots of these around.

Base calculation:  3.8% for the number of years and amount -> Interest paid.

Comparative calculation 1: 3.375% for fewer years, same amount -> interest paid 1.
Comparative calculation 2: new rate for more years, same amount -> interest paid 2.
And so on until years = total years and add up the interest to compare to the base calculation.

This should not be hard to do.
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Author Commented:
OLD LOAN:, I would have to get ahold of the chart that shows how much PMI  I would have to pay. over the life of the loan,  I have requested this from the current lender

OLD LOAN: so mort calculator for  %3.375 using the remaining mortgage balance to get the total interest paid  and add that to the total of the PMI over the life of the loan  =  cost #1

vs

NEW LOAN: new loan at %3.8 use mortgage calculator  using the remaining mortgage balance to get the total interest paid = cost 2

thanks, I think I get the picture but wanted to check my logic
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Yes. Your logic is good. Just make sure the total number of years for the variable amounts = total number of years.
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Author Commented:
I really am very thankful to have a logical person to check my stuff , someone who is not looking to make a buck of me and is impartial !

thanks again John Hurst !
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Thank you for the very gracious compliment. We volunteers at Experts-Exchange like helping people and compliments like yours above helps make this work worthwhile.

Many thanks to you.
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