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Refinance Help

I bought my house a less than a year ago for $124,000 and currently owe $118,000. I did some renovations and do believe the FMV(Fair Market Value) of the home is near the mid to upper $140's. I also did comps and see the properties around my area for that same price. Now I currently have a 30yr FHA loan and would like to refinance to a conventional. What are my options without having 20% equity? What if my home appraises for $140 or higher?
  • October 02 2012 - Franklin Park
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Answers (3)

Hello, I would actually suggest that you speak to your current lender to see what kind of options they have to offer. Sometimes they can help to give you all of the current goverment incentives as well as direct you into the right direction. Then get a second opinion. You always want to make sure you have options. Not all lenders are the same.. They all have different policies and lending practices that is why you may want to speak to more than one. Good luck
  • October 02 2012
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Depending on your credit you can always look into a conventional loan with lender paid mortgage insurance if you are higher than 80% loan to value.  The rate on a conventional mortgage will be higher but removing the monthly mortgage insurance will lower your payment in most cases.

I only lend in Florida!

  • October 03 2012
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All depends on the appraised value; but you can switch to conventional
and easily go to 90%; most cases you would have to pay Mortgage Insurance.

Our bank provides and 80-10 to avoid MI, with the 2nd mortgage rate only 1% higher than the 1st (so, if you did a 30 year at 3.50%, the 2nd would be at 4.50% - for example).
  • October 03 2012
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