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Should I Refinance A FHA LOAN WITH PMI HELP PLEASE THANKS

I currently have an FHA loan 30 Years FHA @5.25%. Current principal balance:$325,519.78  and Principal and interest:$1,900.41 and my Escrow payment:$531.45 and Total monthly payment:$2,431.86 should  I refinance and get another none fha loan without PMI at the lower @4.75% rate?
  • July 16 2013 - Escondido
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Answers (4)

Yes these are very common loans, with property values having increased, refinance out of FHA to remove monthly insurance is prudent especially so when you can lower your interest rate as well. Provide pd your credit is strong and you loan to value allows, this is certainly a great option for you to be looking at.
  • July 16 2013
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Profile picture for dayofrain2001
If your new equity  is 20% or lower of the assessed price, then you will still carry PMI, regardless of it being a conventional loan or not.  In that case I would say no.  

If your equity is higher than 20% then you will need to pay closing costs again.  In return you won't have the pmi.  
I would try to use some of the calculators here to figure out your total interest in your current loan vs. your total interest in your potential new loan.  It is a very small change in rate, it might not be worth it.  
  • July 16 2013
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I think it comes down to what will be your savings and cost of the new loan.  Does the payment difference make a big difference, and does the difference allow you to recoup your closing costs within a few years?  Also, do you plan to live in the property for a long time?

  • July 16 2013
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Are you asking whether you should refinance from your current FHA loan at 5.25 to a new FHA loan at 4.75%, or a new Conventional Loan at 4.75%?

  • July 16 2013
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