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Are there any options to refi out of my FHA?

Here is my situation. Purchased home for 523k, FHA MIP brought total loan to about 530. I'm about 1 yr into my 30 yr FHA mortgage, with a 3.25%. Im paying about 530/mo in MI. Do I have any options to refinance out of this FHA to get rid of the MI? I believe based on current home value I have at least 10% equity, home would prob appraise for somewhere between 575-600k. My wife and I have excellent credit (both over 720). Looking to keep a low rate, possibly get some of my MIP paid up from refunded by refi out, and get rid of this MI. Im in the middlesex county in Massachusetts. Thanks for your advice!
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August 24 2013 - Town of Hudson
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I would stay where you are at. After five years, you can ask for the MI to be dropped if you have 80% LTV. I would not loose the 3.25% rate. It is just too good. 
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August 26 2013
IF you do decide to refinance, you should receive some refund from the UFMIP, as this is usually dispersed over about 3 years time (diminishes as you move further from date of settlement). 

You can go high LTV with Conventional programs, and only pay the Up front MI, versus both the up front and monthly.  Like many have already said, the 3.25% is a great 30 year rate, so you really need to weigh out all of the variables.

Best of luck!
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August 27 2013
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We have an 80-10-10 mortgage which would eliminate your mortgage insurance. Its easy enough to compare that to what you have side by side to make an informed choice. 3.25% is a great rate but FHA MI is expensive. 

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August 26 2013
Your 3.25% is a "killer" rate, and would be difficult to benefit from a conventional refinance with current rates over 4.5% without addition of MI or increased rate/cost for lender paid or single premium MI.  If property continues to appreciate and rates remain low or lower, refinancing to a conventional loan with 20% equity would be good option.
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August 24 2013
You'd be able to refinance now. There are programs that allow 10% equity with no MI. I don't think that you'll get a refund from FHA on the UFMIP. Rates have gone up, so not much of a savings monthly. The benefit will come in that the 530 MI that you pay is not tax deductible (I'm assuming your income level is too high)
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August 24 2013
It is our understanding that you need 20% equity (determined by an appraiser) to qualify for a refi into a conventional loan without MIP.
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August 24 2013
 
Related Questions
Are there any options to refi out of my FHA?
Profile picture for Jon Pugh
Latest answer by Jon Pugh
August 27 2013 | 6 answers
  • Asked by user5250003
  • In Refinance
  • August 24 2013
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