Options to remove PMI on a 2 year old FHA loan?

[bbuhbowler]

I have a 2.75% interest rate and my mortgage company says I am stuck with this for the life of the loan or with a refi. Refi rates are way higher than 2.75 now even with good credit. middle score in the 740s.

amount owed is 175k and similar houses in my neighborhood are selling at 305-330k

Are there any other options?

[ShanetheMortgageMan]

Unfortunately nope, the only way to get rid of your FHA loans PMI is to refinance into a conventional loan.  Your PMI will decrease every 12 months though, slightly, as it's recalculated at .85% (or whatever your PMI rate is) of the loan amount, then divided by 12 months.  So if your loan amount is $175,000 then at .85% it'd be $1,487.50/year or $123.96/mo.  Then in 12 months if your loan amount is $171k then it'd be $1,453.50/year or $121.13/mo, etc.

[bbuhbowler]

Thank you Shane! That is at least some silver lining

[gorgon]

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@ShanetheMortgageMan wrote:

Unfortunately nope, the only way to get rid of your FHA loans PMI is to refinance into a conventional loan.  Your PMI will decrease every 12 months though, slightly, as it's recalculated at .85% (or whatever your PMI rate is) of the loan amount, then divided by 12 months.  So if your loan amount is $175,000 then at .85% it'd be $1,487.50/year or $123.96/mo.  Then in 12 months if your loan amount is $171k then it'd be $1,453.50/year or $121.13/mo, etc.

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Sorry to resurrect an old thread, but this is great to know. I have not found the underlined info anywhere else. Thanks @ShanetheMortgageMan 

[ShanetheMortgageMan]

You're welcome, glad the info helped!