Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 3 years ago on . Most recent reply

User Stats

19
Posts
7
Votes
Lily Sellers
  • New to Real Estate
  • Idaho
7
Votes |
19
Posts

Help! Is it wise to refinance my FHA to a conventional loan?

Lily Sellers
  • New to Real Estate
  • Idaho
Posted

Bought the house for 198k over a year ago with an FHA loan and I have a $1059 mortgage. It is now worth about 245k and I have lived in the house for over a year and want to buy another property. I was wondering if it would be a smart move to refinance the house since I now have about 20% equity in the house to get rid of the PMI (which is about 130$ a month) so I can generate more monthly cash flow. I've read it would cost about 4-6k for closing cost on refinancing to a conventional loan. Would it be wise to just keep the FHA and seek out regular conventional loans for future purchases, or would it be better to go ahead and refinance into a conventional loan? Also, other than the 130$ that I will be saving from not paying a PMI, would the mortgage be lower as well? (not including the PMI since that will obviously already lower the payment) Thanks in advance friends!

Most Popular Reply

User Stats

2,616
Posts
897
Votes
Dave Skow
  • Lender
  • Seattle, WA
897
Votes |
2,616
Posts
Dave Skow
  • Lender
  • Seattle, WA
Replied

Lily - refinancing the FHA loan to a conv loan makes sense for lots of reasons ( mostly getting rid of the permanent mtg ins) ... the thing you need to analyze is comparing your present FHA rate to the present conv rates ..rates have increased a lot so this might take away the large benefits - hope this helps

Loading replies...