Have You Heard? Refinance and Remove FHA Mortgage Insurance

Refinancing your FHA loan to a conventional mortgage may clear room in your monthly budget, especially with interest rates hovering at historic lows. Removing FHA monthly mortgage insurance, it could result in a lower monthly payment and big savings.

FHA Mortgage Insurance

By refinancing your FHA mortgage to a conventional mortgage, you may be able to get a lower rate and/or eliminate your monthly mortgage insurance. FHA monthly mortgage insurance is paid for the life of the loan regardless of how much equity you have, unlike a conventional mortgage.

vs

Conventional Mortgages

Conventional loans allow mortgage insurance to be cancelled once you owe less than 80% of the home’s value and that is 80% of its current value, not what you paid for it. With today’s rising home values, you may be surprised how much equity you have.

How Much Equity Do I Have?

To establish 20% equity, you can either have a home appraisal that states you have 20% equity in your home (usually conducted during the refinance process) or pay down your current loan down to get to 20% equity.

The end result of refinancing could be a lower monthly payment and big savings. Contact us today for a mortgage review to discuss your refinance options.

Related Articles

Get Your Cash Back

Paying cash for a home has benefits. Take advantage of being a cash buyer to give the seller confidence the transaction will close quickly and …

Read More →
Refinance & Renovate

Refinance & Renovate

If you are having a difficult time finding a new home with limited inventory in today’s market, have you considered renovating your current home? We …

Read More →
Tips for Saving for a Down Payment

6 Tips for Saving For Your Down Payment

Before you can make the transition from renting your home to owning your home, you will need to have a down payment, typically 3 to …

Read More →
Credit Tip for Homebuyers

Credit Tips for First Time Homebuyers

When applying for a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your …

Read More →
Have Your Heard - FHA Refi

Have You Heard? Refinance and Remove FHA Mortgage Insurance

Refinancing your FHA loan to a conventional mortgage may clear room in your monthly budget, especially with interest rates hovering at historic lows. Removing FHA …

Read More →
Homebuyer Tips

Homebuyer Tips

Our goal is to make your home buying experience as seamless as possible. We have highlighted some key guidelines to help keep your finances in …

Read More →
Scroll to Top