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FHA to Conventional

I currently have an FHA loan at 4.25% which I took out in 9/2010. My house was appraised at 610k and I have 550k left on it. I was hesitant on Refi'ing since I have to pay upfront insurance again(roughly 9k) and my MIP will go up from $220 to to $530. Here are my questions to all you smart people.

1. If I refi FHA again, will I have to pay PMI for 6 more years, even if my LTV goes below 78%?
2. If I refi FHA and the rates go down again, can i refi into conventional and get some of my Upfront mortgage insurance back?
3. My house when it was appraised was listed as 3 bedroom even though it was 4 and I got that fixed at the registrar. Will my appraisal go up even if the sq footage remained unchanged?
4. For those familiar with the La Cresecenta area do you think the value of my house went up since 9/12?

Thanks in advance!
  • October 25 2012 - Glendale
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Answers (5)

Your current amortization schedule likely is more than 5 years for to reach 78% so to accept 5 more years likely won't be a big difference unless you are already accelerating your principal payments. Coming from existing 4.25 your short term benefit will be small but the longer term benefit more powerful when the MI drops off. As already mentioned UFMIP pro rated refunds are only provided on Streamline refinance.
  • October 25 2012
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Feel free to double check it Ivan.  You will find out that Clay's answer is correct. No portion of UFMIP is refunded or pro-rated when refinancing out of an FHA into a different loan product such as conventional.

  • October 25 2012
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I would double check the answer to #2...The UMIP would be pro-rated based on Date when you decide to refinance.

With that said, I agree with Stuart. I refinance clients who are in a similar position and go with a Lender Paid Single Insurance. You should see a slightly lower rate but the big winner is doing away with the monthly.

If you want a quote...Contact me!

Ivan 
  • October 25 2012
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I have heard of conventional loan products that will refi you with as little as 10% in equity without upfront PMI or monthly PMI so the savings are huge.

Feel free to contact me if you wish for me to send your contact information over to my lenders that migh be able to help.

Cheers
  • October 25 2012
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1) 5 years
2) No
3) probably not
4) Google recent sales in your zip code for comps. If your $610K value is from your purchase then you really need to see some current comps. If you do a no appraisal streamline the value will not matter. Did a lender tell you there is a 5% drop in payment to qualify for a streamline?
  • October 25 2012
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