When and how to refinance

[Ashton Sharp]

Hey guys my name is Ashton, I purchased my first home over a year ago, but the FHA insurance is killing me. I'm wondering what it typically takes to refinance, and if it's a good idea to do so

[Chris Mason]

Hi @Ashton Sharp,

It's almost always a good idea to get out of FHA financing as soon as the equity is there. You can of course, assuming the equity is there, refinance into another 30 year fixed. In many cases, you could also drop down to a 25 year fixed, keep your payments ballpark the same (higher P&I payment, but no mortgage insurance, so a wash), but end up debt-free years sooner.