FHA loan vs Conventional loan
I currently have a FHA $200,000 loan with an interest rate of 3.375% with a pmi flat fee of .85% ($141) of original loan amount. I want get a conventional loan to drop my PMI payment of $141 per month. However, the conventional loan rate is currently about 4.25%.
Should I stay with my current FHA loan or switch to conventional loan?
Most Popular Reply
It’s a math problem, do the math. You didn’t mention the value of the property or how many years you are into your current loan. If you’re 5 years into a 30 year loan and you refi to a 30 year loan, you just added 5 years of payments. If you’re not at 80% LTV or lower you’ll probably have to pay PMI if you refi to non-FHA. If you’re at 80% LTV maybe your current loan has a provision to drop the added fee. Do the work to find the answers. Do the financial analysis. If you don’t know how, then educate yourself. Plenty of free resources on BP.