1st Time Homeowner in MA - 01606

[Amanda Copeland]

I purchased my house utilizing an FHA loan, making a down payment of 3.5% and covering closing costs. I am approaching the one-year mark with my mortgage and have undertaken substantial renovations on the second-floor apartment, which I intend to rent out while residing on the first floor. Offsetting the mortgage expenses has become a priority for me.

However, I am also interested in exploring the possibility of eliminating Private Mortgage Insurance (PMI). To achieve this, I would like to understand the steps needed. Do I need a new assessment of my property's current value, and is it necessary to enlist the services of an appraiser? Or should I refinance from my existing FHA loan into a conventional one to remove the PMI requirement?

My FHA mortgage carries an interest rate of 7.25%, and I've observed that current rates appear to be higher than that figure. My primary objective is to eliminate the additional monthly cost of $380 associated with PMI without incurring additional financial burdens.

Open to any and all advice.