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choice b/w conventional refinance with almost a 1% interest rate increase and FHA with lower interest but PMI. Which one?

by onyejekwekate575 from Washington, District Of Columbia. Oct 19th 2016 Reply


Ernesto Marez (EMarez)
#106 ranked lender in Maryland - 11 contributions

Conventional loans will have PMI if the Loan to value = >80%, ther are ways to get around it as well, with a combo loan ( 1st and 2nd) , Lender paid PMI, single paid PMI.FHA will always have MIP for the entire term. unless you go with a 90% LTV and a 15 year.the rates between FHA and Conventional are < 1% differencecall me, I can go over your options301-535-2912

Oct 19th 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,874 contributions

More info needed, but in general.. If you have high credit scores, then you are most always better off with conventional.. The PMI for conventional can be canceled once you have payed for 3 years and once you have reached 20% equity. You will have to call the lender and make this request and you would have to pay for an appraisal, but so long as the value is there, then they will remove it and you wont have to refinance to do it.. Conventional MI can be much lower than FHA since the premium is based on your credit scores.. the higher the score, the lower the premium.. also, the more you put down, the lower the premium as well. With FHA, everyone pays the same premium and it's there for the life of the loan in most instances.. the only way to remove it is to pay off your loan or refinance into a different loan product. 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 NMLS# 226347

Oct 20th 2016
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