Refinancing an FHA mortgage?

ThreeHonks

ThreeHonks

Forum Member
Im hoping some of you guys out there can give me some tips on doing this...

I currently have an FHA mortgage on my home and have it because I only put down 3.5% at time of purchase... So, as a result I am getting hit with PMI which is not cheap and is doing absolutely nothing for me.

I have almost been in my home for a year and I am pretty sure it has gone up in value to the point where I would have 20% equity of the market appraisal.

Can anyone give me tips on refinancing to a conventional mortgage and removing the FHA loan and PMI? Is there any setbacks like having to be in the home for a certain amount of years with an FHA loan?
 
talk to 13SECSS, hes the man. just did my refi. he can answer all questions.

Steve Frankiewicz #164041
Vice President
Capital Mortgage Funding
A Division of USFS, LLC
313-701-2771 Direct
 
I plan on doing this in about another year myself. With no PMI, my mortgage payment would be ~$500 per month.
 
I would imagine the downfall of doing a refi, depending on what rate you got locked in at, will probably be higher now with the refi. So although you would drop the ~200 mo in PMI, you payment would increase because of the higher rate. It probably wouldn't increase above your current total payment, but your loan payment itself would increase
 
Three honks, please feel free to call me anytime to discuss. There are a ton of options for you, even if you DONT HAVE 20 percent equity. We have a program that will allow for homeowners to refinance into a conv loan without PMI and less than 20 percent equity.

The only down fall to a refinance of a loan that you took 1 year ago is this.... If recieved a great rate from your lender, rates today are higher than they were 1 year ago. You would still save a great deal of money, as you would no longer have PMI, but the rate (may) be higher than what you have now.

I can be reached 24/7 at 313-701-2771

Thanks,

Steve Frankiewicz - (Now licensed in 27 states)
Vice President
Capital Mortgage Funding
A Divison on USFS, LLC
Direct 313-701-2771




ThreeHonks said:
Im hoping some of you guys out there can give me some tips on doing this...

I currently have an FHA mortgage on my home and have it because I only put down 3.5% at time of purchase... So, as a result I am getting hit with PMI which is not cheap and is doing absolutely nothing for me.

I have almost been in my home for a year and I am pretty sure it has gone up in value to the point where I would have 20% equity of the market appraisal.

Can anyone give me tips on refinancing to a conventional mortgage and removing the FHA loan and PMI? Is there any setbacks like having to be in the home for a certain amount of years with an FHA loan?
Click to expand...
 
13SECSS said:
Three honks, please feel free to call me anytime to discuss. There are a ton of options for you, even if you DONT HAVE 20 percent equity. We have a program that will allow for homeowners to refinance into a conv loan without PMI and less than 20 percent equity.

The only down fall to a refinance of a loan that you took 1 year ago is this.... If recieved a great rate from your lender, rates today are higher than they were 1 year ago. You would still save a great deal of money, as you would no longer have PMI, but the rate (may) be higher than what you have now.

I can be reached 24/7 at 313-701-2771

Thanks,

Steve Frankiewicz - (Now licensed in 27 states)
Vice President
Capital Mortgage Funding
A Divison on USFS, LLC
Direct 313-701-2771
Click to expand...


i will make sure i call at 3 am tonight to ask you what kinda quote you can get me for my next project.:bigthumb:
 
The crazy thing is....Ive taken calls that late from clients that work midnights. LMAO

The comment "call me 24/7" has been good and bad...Good as I have belt a great business...Bad, I have taken calls on my wedding day which was on a Holiday....



nitrouspete said:
i will make sure i call at 3 am tonight to ask you what kinda quote you can get me for my next project.:bigthumb:
Click to expand...
 
13SECSS said:
The crazy thing is....Ive taken calls that late from clients that work midnights. LMAO

The comment "call me 24/7" has been good and bad...Good as I have belt a great business...Bad, I have taken calls on my wedding day which was on a Holiday....
Click to expand...

tumblr_lqfm1yzqfp1qakflfo1_400.gif
 
cjmatt said:
is just paying it off to 20% an option?
Click to expand...

Usually a conventional refi is needed anyway because FHA states 20 percent equity AND 5 years since origination. So even if your value increases above the 20 percent I think you're still stuck paying it for 5 years minimum in most cases.
 
a 20% increase is pretty damn good in a year. I'm in a hot market and I couldn't refinance my house and get that kind of markup over 2 years.
 
Thanks for the opinions. It's looking like the prime rate now is just too high to really make it worth it. I'm locked in at 3.875% fixed. might just have to ride it out.

Best thing would be to just put 20% down onto the FHA mortgage but as stated it sounds like you can't do that.
 
There's a lot of info still missing here. You also need a certain reduction in percentage of payment to be eligible for a FHA refi. I forget the number off hand. The next is refinancing a FHA straight up. The pmi rates have skyrocketed since the 2010 era, so depending on how long you're in your loan, you may refi for a reduced rate but pay through the ass on the now sky high pmi rates...thank you recession.

Long story long you need a certain percentage reduction on payment to go FHA to convential, ontop of equity.
 
You do not need a reduction in payment to go from FHA to conv. This only stands when doing a FHA to FHA streamline refi, where a 5 percent in total payment must be reduced.

Pm rates from 2010 till now are about 40 dollars higher per month based on a 100k loan.



04GoaT said:
There's a lot of info still missing here. You also need a certain reduction in percentage of payment to be eligible for a FHA refi. I forget the number off hand. The next is refinancing a FHA straight up. The pmi rates have skyrocketed since the 2010 era, so depending on how long you're in your loan, you may refi for a reduced rate but pay through the ass on the now sky high pmi rates...thank you recession.

Long story long you need a certain percentage reduction on payment to go FHA to convential, ontop of equity.
Click to expand...
 
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