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Updated 6 days ago on . Most recent reply
To refinance or to not refinance
So I purchased my first home in 2021 before interest rates skyrocketed with an FHA loan at 3.5%, and now I househack that property. Im interested in buying my second property. I live in Florida space coast and have been hearing that a lot of people refinance out of fha to a conventional loan, then use the fha again for the second property, and so on. Is this a good strategy? Wouldn't my interest rates be higher? Is it worth it? I'm just looking at options on how to buy the second property, please help.
Most Popular Reply
#2 House Hacking Contributor
- Real Estate Agent
- Los Angeles, CA
It is not just the interest rate but also PMI. I would look into refinancing and compare it to what you are paying now.
Otherwise, look into 5% conventional. I wouldn't lose the FHA rate if the cash flow is there.
If the numbers work with the refinance so you can get another FHA, then it could be worth it.