What do you think of these offers
Current situation:
Duplex I live in one rent out the other - bought in 2024 for $270k
Only put 5% down for a 30yr conventional to not strap myself for cash.
Other unit rents for $1300. Total payment is $2449/mo ($247 princ. + $1437 int. + $764 escrow/pmi).
Remaining loan balance is $251k at 6.875%.
My loan servicer called me with this offer (assuming my home will appraise b/w $310k and $320k, thus removing PMI of ~$126/mo):
28 yr conventional refi to 5.99% bringing my total monthly down to $2169 ($1611 PI + $558 escrow)
Loan costs are a total of $11,520 ($5755 to discount points 2.195%, fees of ~$1950, prepaids of $2551, escrow at closing ~$1100).
My new balance will be $262,192 with an APR of 6.241%.
I shopped around and another lender gave me an offer for a 15 yr @ 4.99%:
Closing costs: $15,790 (prepaid/escrow of $7757 + discount points $8036) bringing new loan balance to ~$268,500
Monthly payment would be ~$2719 ($2121 PI, $550 escrow, $46 PMI)
My dilemma here is - I will move out of my unit and fully rent the home for ~$2650. Do I take the 30 year offer and gain a little cash flow per month, or do I take the faster payoff option with the 15 year, sacrificing all my cash flow but gaining equity much faster? Another concern of mine is how expensive both of these loans are.
Thanks