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?”
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.