I purchased my primary residence in 2007. The rate was 5.99% on a 30 year fixed. Rates have dropped dramatically since then, but so have home prices. I wanted to refinance a while back, but it looked like the lender was going to require an appraisal. At that time, the rate was 4 7/8s for a new 30 year fixed.
The difference between above water and not seemed to be about $12,000.
Should I get a personal loan at the lowest rate I can find to put down on the principal, and then get the refi?
Should I forget the refi idea and just pay more every month to achieve the same kind of savings?
It seems like I will be in the house for a good long while (at least 5 more years), and, in reality, I am making about 40% more now than when I bought the house, so even if I do move, I might just keep it and rent it out.
Edit for some details:
Loan balance is about 193k
House would probably appraise for 180 based on some local sales and advice I got from a few realtors who sent me comps (didnt get official appraisal because $400)
Loan was backed by WV HDF who I think require 97% LTV.
There would be closing costs if I refinanced through them, but it is not necessary to go through them to refinance. As long as it is my primary residence, I can do whatever I want.