Eric's Credit Community

I (me and my wife) originally purchased our condo here in San Diego with 100% financing for $244,000 and were able to refinance both loans into 1 first mortgage only at the incredible rate of 5.375% fixed rate with appraisal value of $263,000...not a bad deal whatsoever, it was so nice that I saved money monthly paying the $128.10 PMI charges.

Right now I am with a balance of 241,400 which is 91.8% LTV ? I need to pay it down do 80% LTV, or $210,400 in order to eliminate my PMI charges. I have the difference from the proceeds of this loan to make it up to $30,000.

What is the benefit of getting this loan at higher rate in order to pay down a 5.375% fixed rate?

Well, after getting the whole PMI removal in place I plan to take out a HELOC (home equity line of credit) with my credit union at 9.75% to payoff this loan. Still doesn?t make sense right?

The answer is: NO!!!  it does make sense. I may lose temporarily with this loan and then with the higher rate HELOC. But basically all this process is set and done I will have a higher income tax write off without paying the $128.10. My point is I don?t mind paying more interest since the finance charges are tax deductible and I, We (me and my wife) don?t have any kids or dependents yet.

Appreciate your time and help in getting this done. Be sure of prompt payments. As you can see I have perfect credit and plan to keep it that way. The only reason that I have a high revolving balance is that I pretty much bought a BMW 325i on a credit card since I got a 1.99% until balance is paid in full offer. Way better than a 6.75% loan that my Credit Union is offering??Again, Thanks for you time.

Felipe & Michelle Pacheco