Does it make sense to refin an FHA into a Conv w/ higher rate to get rid of PMI and lower payments?This is the scenario. I purchased on April 2013 with FHA loan with a 3.5 rate on a 30 yr fixed. Monthly payments are high for me right now at $2,700, being 1870 for principal and interest. 42O PMI and 350 county tax. My current balance is 408K. I have confirmed with my real state agent house has gained 10% equity according to the median sales price in the area. A lender is offering me to do a 90 LTV conventional loan at 4.75 int rate, no pmi, lot closing cost rolle dinto the loan, loan amount 410K. Monthly payments of 2,170 w not impound account. Please help me find out if this is worth to do or not. I understand I would eliminate the PMI and save me $420 there per month plus 1,500 tax credit at the end of the year but if I'm not wrong 300 more on interest per month would be 108K more on interest at the end of the loan. Another thing I'm not clear because every article says something diff is if I will carry PMI for only 5 years or 10 to 11 years if you have to reach 80% LTV based on the appraised value at loan origination and not new appraised value?April 15 2014 - Los Angeles00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.