Should I refinance with a conventional loan? I want to get out of FHA MPI a year after original purchase.

You would want to compare the two programs as one would allow you to eliminate MI if you have 20% equity supported by an appraisal that would be ordered through the loan process. I just quoted on for a customer in Rhode Island and they are saving $100 per month using a Fannie Mae loan versus FHA. These were for 30 Year Fixed terms and even though the FHA Rates are lower by almost 1%, the mortgage insurance basically eliminated any savings. I'd be happy to assess your situation directly as a Direct Lender in all 50 States.

If you have the equity, by all means you should refinance into a conventional mortgage.

Definitely compare the two but a lot will depend on your Fico scores and LTV.

It all depends on the the equity you have in your home and the credit score and debt to income ratio. If you have any further questions we are local in South Carolina.

I fyou have an equity position in your home then it moght make sense to convert your existing FHA loan to a CONV loan to reduce (or eliminate) PMI. There are other consideration as well such as your credit history and the loan size. I'm here in South Carolina and would be happy to discuss your scenario in greater detail.

To make a truly educated decison you need to concider the other factors, like how long you plan on staying in the new loan & owning the home, that combined with the current rate and mortgage insurance (conv or fha) a true mortgage professional will look at all these factors and educate you on the options available to you. If you click on my photo to the left it will give you my contact information and id be happy to have a conversation w/out pulling your credit etc.

Moving to a conventonal loan is a good idea. The prerequisites include credit score, loan to value and haveing sufficient time in the current loan so a new appraisal can be used. If you are short of the needed 20% equity, consider a lender paid single preimium mortgage insurance product - no monthly mortgage insurance payment. Good luck.

Assuming you made the minimum down payment with your FHA loan of 3.5% - You would need to either have an appraised value, or pay down your existing mortgage, so that you have at least 5% equity to get a conventional loan. If you have the 5% equity, or will have, it's very likely that you will have a much lower payment. I am assuming that you took out an FHA loan for a specific reason like the lower down payment or perhaps a low credit score?

Whether or not you should refinance into a conventional loan depends on the amount of equity you have built in your home - if you do have enough equity and a higher enough credit score to refinance into a conventional loan you will probably be able to get a much lower interest rate and not have to pay for mortgage insurance.

If you have at least 20% equity in your home in most cases it will make sense to go with a conventional loan. Click the links below to see an estimate of the value of your home. https://secure.53.com/mortgage/app/homevalue

If you are not under 80% you wont be able to eliminate the MI.