Tony gave a great answer including lots of details. Congratulations on having a great rate and paying down your mortgage so quickly. Every dollar you pay over the minimum should be applied directly on the balance and will shorten your term and reduce what you owe directly.
The problem with refinancing to get out of PMI is that you are trading dollars, especially with your rate. Loan costs, starting the 30 years over again and still having PMI is probably not a good plan, but that's up to you to decide.
One thought, if you have any other debt like cars or credit cards, I'd turn your focus on paying them off first. Since you may have 5 years from when you bought the home and since PMI and interest are deductible and other consumer interest isn't you may get farther ahead doing that, if you have other debt.
Best of luck and let us know what you decide.... more
Buying a foreclosure vs a standard private party sale won't make much of a difference in this case. You still have to qualify for the loan either way. So, as the others said, your best bet is to meet with a lender to see if you would qualify for any mortgage programs. If you qualify or not will depend on how damaged your credit is, debt to income ratio, down payment, income, job history, etc.... more
Anna is right. Right now in Wisconsin, the homes that are on the market is because people need to sell. During the GOOD times people were just moving around. Now if the home is on the market there is a big need. Short Sales also might be somewhere to look. There is a very long foreclosure processes in Wisconsin a lot longer then a lot of states. So sometimes we are seeing homes where no one has been in it for 2 years. Some have water damage because the pipes have broken in the walls. Sub pumps aren't working and the basement have gotten water in them. Short sales a lot of the time the owners are still there taking care of the home.
Homestead Realty Inc