05-14-2013 09:54 AM
I have heard it go both ways.
But from what I understand, if you can get a DU approval now then you can get a case number but you cant actually close till the time is up. But I believe a case number is only good for 6 months.
06-01-2013 11:38 PM
Wait, so, you still can "refinance" to get out of PMI after 6/3?
Here is my situation:
I am currently own a house and have at least 130k equity.
I want to buy another house, then sell my old house so that I won't have to rent while looking for another house.
Let say I bought a house for 450k, with 3.5% down payment ($15750).
Two months later, I sold my old house and get 100k back after all the fees/charges.
Now I use that 100k to pay down the new loan. That should bring the balance down to around 74% +/- LTV (assumed the house value stays the same).
Can I refinance at this point and convert to conventional to get out PMI?
06-02-2013 12:18 AM
06-02-2013 02:02 PM
Yes, you can always refinance into a conventional and drop PMI if you have at least 78% LTV.
Keep in mind though that part of the FHA loan is UFMIP, which is a pretty large amount and gets rolled into the loan, which means even if you refinance, the new loan will still have that amount to pay.
06-02-2013 03:02 PM
UFMIP is Up Front Mortgage Insurance Premium, which all FHA loans have, and even though it's called "Up Front", most poeple roll it into the loan. It's just one of the two parts of mortgage insurance with an FHA loan, the other is the monthly payments.
The UFMIP is 1.75% of the purchase price I believe, with the monthly payments being about 1%. You end up paying both, but if you refinance into a conventional loan, you get rid of the monthly MIP payments but the FHA still gets that 1.75% that got rolled into the loan when the loan is paid off by the new lender.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.