How to know If I'm close to refinancing FHA into a conventional

[Nate Julian]

Hey everybody!

SO I've owned my 4-plex for a little over a year. I've been patiently waiting, and sifting through direct mailers waiting for lenders to start offering to pay closing costs on a refinance with FHA loans. That day has finally come for me. So I got a quote on fees etc. and I've just been working through each piece, looking up definitions etc. trying to grasp a better understanding of all the fee's, etc. This refinance into another FHA loan doesn't look like too bad of a deal. Things are going well so far, and I"m enjoying gaining a better understanding. At the very least, it is forcing me into studying once the wife and baby go to bed.

On the flip side, there's also the crazy strong desire to rid myself of the pesky Private Mortgage Insurance. This can only go away with a re-finance into conventional. This requires 20% of the loan obviously, and I understand it can be achieved in a few different ways or a combination of those.

With having a friend look at a few comparables in the are, which there are no real strong comparables in the area, it looks as if the property has most likely increased more than expected. The property most likely would have appraised for more at purchase if the appraisers weren't under the "watchful eye".

How do I best go about understanding where my property truly sits in relation to that 20% mark? From what I understand I can either wait for the property to appreciate 20%, I can pay down the principal 20%, or use a combination of the 2 options. Correct in my understanding? I'd rather not pay for an appraisal because a different appraiser will be doing the actual appraisal, and I would be paying for that during the refinance anyways if it went forward. Trying to avoid unnecessary charges.

I have received some instruction to call around to banks and give NOI, Location, etc. and get an idea on Cap Rate to see if I'm close.

Does anybody else have any suggestions as to how I can get a good evaluation and decide which route to pursue??