The only thing about refi-ing out of an FHA is that the interest rate may be increased by the time you're ready to refi and you might not save as much money or it could cost more money. And then that traps you with the PMI. The only good news is PMI is a % of the principal amount owed, so as your principal goes down, your PMI goes down also.
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Yes that is the nice thing. Knowing that the $346 per month will go down over time. I will enjoy writing off my PMI on next years taxes. That was another thing that recently changed. PMI was not a tax credit last year.
Right but the human underwriter simply verifies DU and sends out conditional approval. Now the human underwriter will have to do what DU normally does automatically and make a more informed decision.
The link here explains that PMI will be required until the principal balance is 78% for terms less than or equal to 15 years.
The letter states that PMI used to not be required for terms less than 15 years but it will be required after June 1st.
http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf
The letter states that PMI used to not be required for terms less than 15 years but it will be required after June 1st.
http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf
