Refinance to Conventional from FHA to avoid PMIHello- My husband and I bought a house with an FHA mortgage last year. At the time, FHA seemed a good option because the interest rates (3.25%) were low and we could only afford 5% down payment. As a result, we are paying a monthly MIP (PMI) on our mortgage. We have saved up to 10% downpayment and were wondering which of the following options would make the most sense.1. Switch to conventional in the next few months and put additional of 10% down (that we have saved up). 2. Switch to conventional right now with 10% down + 10% equity (house prices in our neighborhood have drastically increased)3. Wait until we have 20% saved up and then switch to conventional (next year prob.). 4. Continue with FHA to keep interest rate 3.25%. Transfer 20% towards mortgage. Pay MIP for next 5 years. We think by switching to conventional right now, we might avoid PMI. But, on the other hand, we might lose the 3.25% rate with FHA. Also - our house price has gone by at least 8-9%.It would be great if we could get some suggestions.Thank you!November 03 2013 - Fairfax00YesReport 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.