FHA 20% Equity Refinance

[Tom Cramblit]

Looking for some clarity to refinancing to eliminate the PMI on my FHA loan. I've talked to bankers and they have told me that once I have 20% equity I can refinance and the PMI payment will be done. My main question is to the specifics on how the bankers calculate that 20% equity. Since I've bought the duplex I have made improvements to the one side of the duplex that I currently live in, new windows, refinished floors/cabinets, fresh paint, etc, and I'm wondering how that would factor into the 20% equity in addition to the monthly mortgage payments. Thanks in advance.

[Blair F.]

Tom Cramblit it depends on how much you have improved the property and how much your local market has increased in value. I was able to refi out of my FHA a year and a half after purchase with no extra money, but the market has been hot in my area and I made some key improvements so the house appraised high enough. Good luck!