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FHA Refinance (Non-Streamline) from 30 years to 15 years

I bought a home last Dec for 545,000 and have a mortgage of 30 years @3.75 %.
I want to refinance this to 15 years FHA.  The home value has gone up in my area since last year and is approximately 575000. My current mortgage balance is 515000.
The main reason I want to do this is to save on FHA MIP as it much less for 15 years loan with LTV of < 90 % and also to pay off my loan faster.

Is it possible to do this kind of FHA refinance ?.  All information I am getting is FHA streamline which is not what I want to do as I am increasing my monthly payment.
Also I have already paid 1 % upfront MIP when I got FHA loan. Do I need to pay 1.75% MIP again or will I get some credit ?
  • November 25 2012 - Chantilly
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Answers (8)

Best Answer

I would compare both Conv and FHA. If the appraised value gives an LTV of 89% then the monthly MI payment would drop aprx $362/month ( FHA ) and fall off after 29 payments. While you do have a new UFMIP charge you will get aprx $2900 refunded from the original UFMIP charge, the difference owed is usually offset with a lender credit since FHA loans pay a higher premium.You would still have to deal with mortgage insurance on a High Balance Conforming loan.
  • November 27 2012
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690 is OK but will affect the pricing on a High Balance Conforming loan more than it would FHA, also the mortgage insurance rate. The P & I payment will be much higher on a 15 Year, have you calculated the debt ratios using a 15 Yr?
  • November 27 2012
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Thanks everyone for the responses. I would certainly consider conventional loan. The only reason I thought FHA will be better for me is because my credit score is around 690 and not 720+ which is what most lenders are demanding for conventional loans as per news reports.
  • November 27 2012
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I agree that you should compare a conventional loan with MI to the FHA loan of you are at 90% or less now. Most cases I have compared, the conventional loan has made more sense.
Best wishes, Jim
  • November 27 2012
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I would recommend comparing a new conventional loan with a new FHA loan.
  • November 27 2012
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Do you have a conventional mortgage now?

OP stated:

Also I have already paid 1 % upfront MIP when I got FHA loan

  • November 26 2012
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How much MI do you pay now? Do you have a conventional mortgage now? I'm not sure you will achive your goal by getting an FHA mortgage. If you'd like to talk about your options give me a call
Melissa Schneider
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  • November 26 2012
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Yes, it's just called a Rate & Term. Yes, you have to pay another UFMIP fee and you will get a partial credit of the UFMIP you paid last year.
  • November 25 2012
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