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KnowYourRights, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 27268
Experience:  Experience protecting consumers against unfair, deceptive, or fraudulent advertising, marketing and financial practices.
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I want to refinance my FHA loan to a conventional loan. My

Customer Question

I want to refinance my FHA loan to a conventional loan. My credit score is 757. I do NOT have 20% down on the value of loan. I have been quoted 3.75% interest rate with total cost of $3,000. The PMI is what I wanted to get rid of but it was explained to me I am quoted a higher rate as the PMI will be rolled into. I will be saving about $245 per month. Is this a good deal? Once I have 20% into the value, will I be able to refi and get the PMI off?
Submitted: 9 months ago.
Category: Consumer Protection Law
Expert:  KnowYourRights replied 9 months ago.

Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help with your question and concern

Expert:  KnowYourRights replied 9 months ago.

Yes, to remove PMI, or private mortgage insurance, you must have at least 20% equity in the home. You may ask the lender to cancel PMI when you have paid down the mortgage balance to 80% of the home's original appraised value. When the balance drops to 78%, the mortgage servicer is required to eliminate PMI. In addition, if you can lower your interest rate at this time and it will save you money, you may want to do it as long as the fees to do so of $3000 will be less then what you would pay if you kept the mortgage a FHA

Expert:  KnowYourRights replied 9 months ago.

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