Coming back to you with a question I get asked a lot
Having to do with refinancing
“Scott, can I drop my mortgage (by my PMI, if it’s FHA my MIP)..
“Can I drop my mortgage insurance when doing a refinance
Whether it’s a Rate Term Refi or a Cash Out Refi”
And the answer to both is YES
As long as you have sufficient equity in the property, you can do that
Now, one situation I run into a lot
Somebody has a current FHA loan
For those of you that don’t know this
MIP which is FHA’s version of mortgage insurance
MIP is permanent, if you have FHA loan for 30 yrs
you will have it for 30 yrs
I’ve had situations where people said
“Scott, I want to refinance from an FHA loan to a conventional loan,
to drop mortgage insurance.”
But the house did not appraise high enough
And it did not have that 20% equity required to drop the mortgage insurance.
Does it still make sense, to do a loan?
YES and here is why, on a conventional loan that mortgage insurance comes off
So, converting from a permanent mortgage insurance situation
To a temporary mortgage insurance situation, is a WIN
As long as we are looking at the long term plan
Exit strategy, rate term, debt consolidation, etc…
But it can absolutely make sense
That’s what I got for you between mortgage insurance
being removed or maybe converted when you are doing a refinance
Look, everybody’s situation is different
Feel free to reach out to me, email me, DM me..
Whatever you need, outside of that
My name is Scott DiGregorio, I’m Your Mortgage Guy
I’ll see you on the next video, take care.
