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12-20-2012 05:33 PM
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..
12-20-2012 05:39 PM
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.
12-20-2012 05:58 PM
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.
12-21-2012 02:09 PM
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?
12-21-2012 03:50 PM
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?