Reply
New Contributor
kwesi
Posts: 70
Registered: ‎11-29-2011
0

Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

I got a FHA loan from wells fargo 6 months ago and paying it great noproplem with that, I just don't like giving money away and that what it look like when every month $251 goes to PMI. Can I refi the FHA loan after 6 months. I have a equity in my home..bal $267k aprse when i got it $305k APR 3.87%..jUST DON'T LIKE SEEING THAT PMI EVERY MONTH., that money can go to paying down my house..

Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

You will need to put about $23,000 down to get a conventinal loan without PMI. You need an 80% loan-to-value ratio before you can get a loan without PMI from my understanding, so if it appraises at $305k, then your loan can't be more than $244k. 

 

It's possible that the value of the house went up a bit in the 6 months since you bought it so that would help, it would depend on the appraisal. 

 

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

Actually you can do LPMI with conventional and pay the PMI all up front and be done with it.

Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?


tooleman694 wrote:

Actually you can do LPMI with conventional and pay the PMI all up front and be done with it.


What is the advantage of doing it that way vs rolling it into the mortgage?

 

I know with FHA Mortgage Insurance, there is an "Up Front" portion, that gets rolled into the mortgage, and then there is also a monthly payment that is separate from that. 

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

With conventional, you just have the upfront part with no monthly payments. It can be a huge savings.

Established Member
jonathanw84
Posts: 31
Registered: ‎08-05-2009
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

I am wondering the same thing. My wife and I purchased a house in April and pay about $200 in PMI because we did an FHA with 3.5% down. We owe $180k and the house was appraised at $187k. I'd love to get rid of the PMI and save some money. Is this possible?

 

Thanks!

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

Refi conventional yes.

New Contributor
kwesi
Posts: 70
Registered: ‎11-29-2011
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

Do I need to put money down? Also do I need over a 660 middle score? Thank you
Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

680 middle score, and you will need to pay the LPMI up front or they cant raise your rate a little.

Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Want to refinance my FHA loan so I can stop paying PMI. CAN IT BE DONE AFTER 6MONTHS?

Tooleman: Do you know how much LPMI is? What percentage?

And is 680 the minimum for all lenders? Does a larger down payment make any difference in what credit score you need?


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}