Oct 15, 2018
Eliminating PMI should always be your first goal when looking to refinance your FHA mortgage. The reasons is simple, it adds nearly 1.00% to your effective interest rate (the rate you are really paying)! When factoring the Upfront PMI that you paid at closing, your payment on this loan are very high. The FHA loan did its job at allowed you to purchase the home at a low down payment. Now its time to use the new equity and get into a more advantageous loan production.
Jul 30, 2018
FHA loan handbook, HUD 4000.1 states that a refund is available if the borrower is refinancing an FHA mortgage to another FHA mortgage within the first 3 years. This schedule is a pro-rated refund based upon the length that you have been on the loan.