Fha streamline refinance, help me feel better about it

[GMCTexas]

Quicken does have the MIP ending in 11yrs.

[GMCTexas]

Just checked out an ltv calculator, to hit my 80/20 for a conventional my house needs to appraise for $269k. While it's gone up in value over the last 2yrs and may very well be north of 250k I personally doubt it's at 269k. So it sounds like FHA is still my only option. But hopefully in a few more years I can refi into conventional if rates are favorable.

[NC_Mtg_Loaner]

If you went with a conventional loan and had an LTV of 85% or 90% based upon your current appraised value, your PMI would be lower than with FHA and would drop off faster than FHA's 11 year minimum requirement.

[GMCTexas]

Thank you. I wasn't aware that you could get a conventional with PMI if you are aren't at 80/20. The LO from the local company that got me the initial FHA finally contacted me yesterday and said he was going to look into what we can do.

[NC_Mtg_Loaner]

With all due respect, that LO hasn't said much that's been correct from the get-go and I'd advise treading lightly when taking his words if he can't put #s in writing and on paper for you.

1. FHA Streamline Refinance is just a rate and term refi--if you change the term of your loan, switch from 30 to 25, 30 to 20 or 30 to 15 it will no longer qualify as a "streamline" where the paperwork is reduced, appraisal not required as well as a few other things that make the Streamline Refinance a 'dream' deal.   FHA loans are great loans, don't get me wrong--especially a decade or so from now IF interest rates ever go higher, the fact that they are assumable may be advantageous when one owner decides to sell their home that's financed with a low rate FHA loan.

2. Yes, conventional or conforming loans with an LTV > 80% do have MI and that MI will be removed automatically once the LTV reaches 78% based upon your current appraised value and amortization schedule.   Many lenders, upon request, will be able to remove the MI when you get to 80%.   However, if you ever get to this position, do whatever you can to avoid having to pay for an appraisal if possible.   It shouldn't be necessary, but some banks like to pay their 'in-house' appraisers.