What Happens When You Refinance From FHA to Conventional

What Happens When You Refinance From FHA to Conventional

Broker | Owner | Mortgage Consultant
Josh Lewis
Published on December 6, 2021

What Happens When You Refinance From FHA to Conventional

Here's how MI requirements are calculated on your refinance.
 

Today’s question comes from Shatteria Taylor. She asks, "I'm interested in refinancing; I currently have an FHA loan (current interest rate of 3.2%) but considering maybe a conventional loan. Will I have to still put that 20% down in a refinance?”

Verify your mortgage eligibility (Jan 21st, 2022)

The loan-to-value on your refinance will be determined by your appraised value. Let's say you bought for $300,000 at 3.5% down. If that property goes up to $360,000 in value when it's appraised, you don't have to put down anything. That intangible equity prevents you from having to put money in.

Now if it's gone up to $310,00 and you want to switch over to a conventional loan, you would need to bring the money in to take it down to 80% loan-to-value or lower.

If you have any questions for me about real estate, don't hesitate to reach out via phone or email today. I look forward to hearing from you.

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Broker | Owner | Mortgage Consultant
Josh Lewis Broker | Owner | Mortgage Consultant
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