- Tips to Lower your Electric BillPosted: 1 year ago
- 5 Easy Home Improvement Projects & Upgrades For the WinterPosted: 1 year ago
- Benefits to buying in the winterPosted: 1 year ago
- Cash In with a Cash-Out RefinancePosted: 2 years ago
- Mortgage MythsPosted: 2 years ago
- Q&A: All About Flooring — Hardwood, Carpeting, Tiling, LaminatePosted: 2 years ago
- Tip: 3 Foolproof Social Media Marketing TipsPosted: 2 years ago
- Tips for Hosting a Stress-Free Holiday DinnerPosted: 2 years ago
- Is a Mortgage Refinance Right for You?Posted: 2 years ago
- Check Your Disaster Supplies KitPosted: 2 years ago
- Create an Early Holiday Shopping BudgetPosted: 2 years ago
- 9 Ways to Make Moving Day EasierPosted: 2 years ago
- July 2018 Market Update – Twins Cities RegionPosted: 2 years ago
- Fall Homeowners ChecklistPosted: 2 years ago
- Scam Alert: Spoofed IRS Phone NumbersPosted: 2 years ago
- 15 Years of First Class MortgagePosted: 2 years ago
- How to buy a second homePosted: 3 years ago
- Q&A: Lawn Watering SecretsPosted: 3 years ago
- Troubleshoot Your Air ConditioningPosted: 3 years ago
- Your Mortgage, What to Expect: Clear To ClosePosted: 3 years ago
- Twins Cities Region Monthly Indicators – APRIL 2018Posted: 3 years ago
- Your Mortgage, What to Expect: UnderwritingPosted: 3 years ago
- Your Mortgage, What To Expect: Property AppraisalPosted: 3 years ago
- 3 Tips to Improve your Credit Score and Score a Lower Interest RatePosted: 3 years ago
- Changing Interest Rates Have A High Impact On Purchasing PowerPosted: 3 years ago
- The Myth of Multiple Mortgage Credit InquiriesPosted: 3 years ago
- Things to do BEFORE you buy a home.Posted: 3 years ago
- March Tech Tip: Pack Smarter With PackPointPosted: 3 years ago
- 4 Ways to Pay Off Your Mortgage EarlyPosted: 3 years ago
- Clean House in a HurryPosted: 3 years ago
- Your Mortgage, What To Expect: Document ReviewPosted: 3 years ago
- Chill Winter Utility BillsPosted: 3 years ago
- Six Tips to Help Your Home Sell This FallPosted: 3 years ago
- 4 Things to Know About Closing CostsPosted: 3 years ago
- Understanding Your Credit ScorePosted: 3 years ago
- Equifax Data Breach: What should you do now?Posted: 3 years ago
- Should You Refinance Your FHA to a Conventional Loan?Posted: 3 years ago
- 6 Ways to Save on Paint ProjectsPosted: 3 years ago
- Q&A: Mortgage InsurancePosted: 4 years ago
- How to Keep Your House Cool this SummerPosted: 4 years ago
- Mortgage Education: “What’s the Point?”Posted: 4 years ago
- Q&A: Spotting a Spoof SitePosted: 4 years ago
- Moving ChecklistPosted: 4 years ago
- Squash Marital Money SquabblesPosted: 4 years ago
- April 2017: Twin Cities Real Estate Market UpdatePosted: 4 years ago
- Your Spring Guide to Home StagingPosted: 4 years ago
- March 2017: Twin Cities Real Estate Market UpdatePosted: 4 years ago
- Don’t be a Victim — Four Ways Protect Yourself from Refinance ScamsPosted: 4 years ago
- Local Market Update: Minneapolis Area Association of RealtorsPosted: 4 years ago
- First-Time Homebuyers: Where to startPosted: 4 years ago
- Dear First Class Mortgage:Posted: 4 years ago
- First Class Mortgage. Our Expertise, Your Peace of Mind.Posted: 4 years ago
Should You Refinance Your FHA to a Conventional Loan?Posted by
If you are like most first-time homeowners, your first mortgage was an FHA loan. Your FHA loan gave you the ability obtain financing, requiring only minimal down payments and fair-to-good credit scores. While this was a perfect fit for you at the time, you now may be looking to save some money. One way to do this is to refinance into a conventional loan.
One significant advantage of switching to a conventional loan is that, with the right loan-to-value ratio, it can eliminate mortgage insurance. While conventional loans have stricter credit requirements, and typically require borrowers to have at least 20% equity in their homes, any mortgage insurance provision cancels once your house reaches a 78% loan-to-value ratio.
Additionally, refinancing to a conventional mortgage may allow you to take out a larger home loan.
Refinancing does come with costs, such as closing fees, and may require you to present many of the same documents during the application process as you did with your original home purchase. Plus, you may also need to pay for an appraisal of your home.
Checklist: When Is a Good time to Refinance from an FHA to a Conventional Mortgage?
If you’re still not sure whether you should refinance from an FHA loan into a conventional mortgage? Take a couple of minutes to answer the following questions. They can help you decide if a refinance is right for you.
1. What are my goals?
2. Does refinancing make financial sense?
3. What is the current value of my home?
4. What is my existing home equity?
5. Can I afford the refinancing closing costs and fees?
6. Can I provide all of the necessary documentation?
Considering a Refi? Let us help!
Our expert mortgage consultants can help you evaluate your current loan situation and help you identify if a refinance is right for you. Give us a call today!
Source: PennyMac, Link