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Refinance Options - Remove PMI

I'm looking for an option to refinance and remove PMI. Here's the scenario: 1 Year ago I purchased a home as a short sale. It appraised for $222k and was purchased for $195k with $10k down. With little principle payed over the last year I am currently sitting on an FHA loan with a $185ish balance. 

The question is, can I refinance and find a better rate than 4.5% (30yr fixed) while also dropping the PMI? I am hoping the loan 20% requirement would use an appraisal as the baseline for equity calculations.

Thanks in advance
  • September 18 2012 - US
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Answers (5)

Best Answer

Yes you can, assuming your FICO score is good you can refinance into a conventional loan.  If at 80% or below you will not have to worry about the PMI, in the event you are at 85% or 90% you can avoid the montly PMI by asking your loan officer to provide you with single premium MI and use his lender credit to cover the expense.
  • September 18 2012
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Will do. Thanks a lot
  • September 18 2012
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Ok then the refinance should work out great for you then with those scores.   We only lend in Colorado but if you'll look up Clay Branch in the lender directory he can assist you with the refinance there in MO.  You'll be in good hands. 

http://www.zillow.com/profile/Georgia-Loans/
  • September 18 2012
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Thanks for the response. My credit rating shouldn't be a problem (750-800 last I checked). I'm in southwest Missouri.

I'd really like to check out 15yr Fixed and 30yr fixed options so it sounds like I'll need to start talking to a lender. I assume you can't endorse a lender on this site but can you give any useful advice in that arena as well?

Thanks again
  • September 18 2012
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Nic is spot on with his assessment.  As long as your credit is good, there is no reason to stick with that FHA loan.  Where are you located
  • September 18 2012
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