FHA Financing Advice

[Ben Pearce]

Bought a Duplex in search of some FHA financing strategy.

Basic Info: Purchase Price $333,000 - Locked in Rate (30 year) 2.625% - FHA Insurance 0.8% or approx. $220/m

Trying to think through two routes at the moment and would appreciate some input form more experienced home buyers. 

Option 1: Put 3.5% down, then 1-2 years down the road refi to conventional to ditch being stuck with FHA mortgage insurance for 30 years. Worried about landing a higher rate, say 3-4% plus additional costs for a new loan. Afraid this could just make it a wash with paying the insurance for 30 years.

Option 2: Put 10% down, only stuck with FHA mortgage insurance for 11 years. Peace of mind of being locked in for 30yrs at 2.625%