[quote=bearishgurl]flu, I take it you currently have a conforming loan? In light of your circumstances I think you are very wise to keep your 15-yr loan term and endeavor to pay it off in 10 yrs.

Is the new $2800+ mo amount PITI or just PI? I’m not too familiar with the rents up there but if your payment is just PI, I don’t see the viability of renting out without either a negative cash flow or the hassles of turnover with a rent set at above $3500 mo.

If you pay the extra every month like you are planning to for at least a couple of years, your new 15-year loan will begin to amortize very quickly at about 40-42 months in. This will give you and your family a lot of flexibility.

I wish you all the best with your health issues.[/quote]

15 year conforming. It’s $2800 PI.

But if I were considering the renting option, I would have opted for a 30year conforming at 3.875, which would have been 1867/month (PI)….Add $1000/month for “T and I”, that would be about $3000k/month, for which my neighbors rented recently around $3200-3500/month. So it can cashflow, it’s just I would have a bunch of equity tied up. So assuming ideal situation, it would probably be about 1.5% returns on the my equity, which isn’t great. Hence why I’m not doing it….