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best refi option for eliminating mortgage insurance?

currently in an FHA 30 year mortgage and due to get the MI off. in fact i'm past 80 LTV. what refi program should i go after? i have 689 fico by grace.allover7846... from Clarksburg, Tennessee. Dec 18th 2014 Reply


I would suggest looking at a conventional loan if you're 80% or less. I'd be happy to help you look into another loan. I'm a national mortgage bank. If interested feel free to email me at Marlon@amtgbank.com or call me at 405.285.1234 ext 116

Dec 18th 2014
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Nancy J Releford (nancyreleford)
#1 ranked lender in Tennessee - 215 contributions

Your only option is a conventional loan @ 80% loan to value. Depending on when you did your FHA loan, I'm assuming it was several yrs ago, normally with an older FHA loan the MI will come off when your loan is @ 78% of the appraised value. Give my office a call if you want to discuss your options.

Dec 18th 2014
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Melissa Stutes (MelissaStutes)
#28 ranked lender in Hawaii - 101 contributions

You should consider a conventional loan. Also, consider a 20 year term. Rates are typically lower for a shorter term, and you'll continue reducing the years of your mortgage quicker. A 20 year term will also keep your payments reasonably low (compared to a 15 year). Good luck!!

Dec 18th 2014
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Larry Gray (lgray_312_247)
#563 ranked lender in California - 1,127 contributions

As Nancy responded you may well benefit from being at 78% of loan to value if your FHA loan was financed some time ago. More recently acquired FHA loans have mortgage insurance attached for likely the life the loan in most instances, so refinancing out of it into a conventional loan is their only option out of PMI. Having agreed with Nancy, I suggest you call her and have her show you your options...you can still get an excellent rate right now with a 689 FICO for a 10 to 30 yr. fixed. Did you know even a 25 year fixed can be an option?

Dec 18th 2014
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

As Nancy pointed out above, it depends on what the terms of your current FHA mortgage are, in some the MI will drop off once you reach 78%. If you are close to that and have a low interest rate on the mortgage it may not make sense to go through the cost of refinancing. Othewise, don't wait, apply today to refinance using a conventional mortgage! I can help if you would like.

Dec 19th 2014
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Pete Bass (PeteBass)
#31 ranked lender in Connecticut - 476 contributions

This depends on some factors that are individual to each loan. 1st, qualifying for a Conforming loan requires lower debt to income ratio's. The loan officer of your choice would need to see your income/assets/ credit to give you a through analysis and options for you to consider. for more information please e-mail me at: pete.bass@everbank.com. Look forward to hearing from you.

Dec 19th 2014
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Chris Neuswanger (mtnmortgageguy)
#94 ranked lender in Colorado - 84 contributions

Check with your lender first and ask if your loan is eligible for having the FHA MI dropped, older FHA loans can do this, newer ones cannot. If your interest rate is close to the low 4% range you might want to just keep the loan if you can get the MI off.Otherwise a new conventional loan will work, shop not only for the rate but compare the hard closing costs for origination, appraisal, underwriting and title charges. If you plan to keep the place a long time it might be worth it to pay some or all of the closing costs and get a lower rate, or ask if a slightly higher rate will allow you to eliminate the closing costs. Also consider an adjustable rate that is fixed for 5-7 years if you might be out of the house or the loan in that time period. These loans come with a lower start rate for the initial period, but sometimes closing costs can be higher. If you are in Colorado call me at 970-748-0342 to discuss.

Dec 19th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,041 contributions

Once a minimum of 5 years has passed, older FHA loans will allow the MI to drop off automatically at 78% of the ORIGINAL APPRAISED VALUE.. this is different than having 22% equity.. If you purchase the home for $100K and it's now valued at $120K, then this has no affect on FHA MI since they are not looking at today's value.. for FHA MI to drop in this example, your loan balance must be at or below $78K. New 30 year interest rates are very low and refinancing into a 15 year conventional loan can lower your rate even more.. it might even be possible to lower your payment and shorten your term using this strategy.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Dec 22nd 2014
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Michael Patterson (MichaelPatterson)
#52 ranked lender in Washington - 71 contributions

I would recommend having a lender pull up your FHA Case ID # and finding out about when the MI could drop off. Older FHA loans have these provisions in place for this. However, if your interest rate is also above current market rates, then discussing it with a licensed loan officer for your state, running preliminary estimates with even manye what is called an AVM (Automated Valuation Model) to see what the comparable sales are looking like could be very helpful. Then, you can decide about obtaining a new appraisal to see if you can get below 80% loan to value on a conventional loan. If that looks favorable, then rolling the dice and paying the appraisal fee to see what the appraiser says about value would be most prudent. A calculated risk at that point. Also, if you come up slightly short of 20% equity, it may be worth picking up a small Home Equity Line of Credit as a 2nd lien to make up the difference, knowing you'll pay it off quickly... AND avoid the mortgage insurance. Just some thoughts. ;)

Dec 22nd 2014
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