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Can I refi a FHA loan and do away with PMI since I now have 20% equity?

by steves269 from , California. Sep 19th 2013 Reply


Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,240 contributions

Depends on the type of mortgage you refinance into. If it is another FHA loan it would depend on when your last loan was closed and whether the new loan were a 15 year or a 30 year term. Ideally you'd probably try to be approved for a conventional loan where the interest rate is usually slightly higher but there is no PMI if you have 20% equity based on a new appraisal.

Sep 19th 2013
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Adrielle Edwards (AdrielleEdwards)
#909 ranked lender in California - 96 contributions

Hi Steve, the others have it right, refinance into a conventional loan to get rid of PMI. You will, of course, need to qualify on other factors such as income, debt to income ratios and so on. I am a mortgage Banker in San Diego and can lend anywhere in California. If you would like to discuss your options, feel free to give me a call at 858-412-0712 or send me an email at Adrielle@CaliforniaMortgageDirect.com. You can also follow this link to complete a no obligation application: http://californiamortgagedirect.com/full-application

Sep 19th 2013
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That equity puts you in a great position. Yes, you'll just need to see if you qualify for a Conforming type mortgage in other respects. Credit, Income, etc. You have a great start! Did you have an appraisal done? How are you coming up with your homes Value? On the House Realty and Lending ncarlson@othrealestate.com

Sep 19th 2013
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Hans Bruhner (Hans Bruhner)
#133 ranked lender in California - 113 contributions

You could do away with the MI on your loan if you got a conventional loan. Be aware that when you pay off an FHA loan, the current lender will collect the interest for the entire month and the new lender will collect interest from the day of funding to the end of the month so if you close early in the month you will pay double for most of the month and if you pay at the end of the month you minimize that cost. A good loan officer will know this but you should be aware. I am in CA as well and I am at (866) 385-1650 or hans@fpfmail.com

Sep 19th 2013
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Hi Steve, I would recommend refinancing into a Conventional Loan. This type of loan does not require any type of mortgage insurance once the loan is 80% or less. Please feel free to call me at 1-800-530-2489 Ext 362. Our current turnaround time for closing a Conventional Loan is 3 weeks.

Sep 19th 2013
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 351 contributions

Yes you can. Speak with a local mortgage banker who can get you prequalified and let you know all of your loan options.

Sep 19th 2013
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Hello Steve, it is possible provided your appraisal is right and your current equity is more than 20%. This scenario will only repudiate the PMI if you refi into a conventional. Some people feel that, conventional is priced higher than FHA, I disagree because if your FICO is good,you might get a lower price with conventional than with FHA. Also when the eliminated PMI is factored into the equation, I find conventional cheaper. Give me a call @ 909-641-9980 for any furtherance. Thanks Steve.

Sep 19th 2013
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Gregorio Denny (GVDenny)
#259 ranked lender in California - 380 contributions

Interest rates are down again this week. It's a great time to look into refinancing out of that FHA mortgage to conventional. Give me a call.

Sep 26th 2013
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