Asked by jcampbell71  |  Submitted November 12, 2016

I have 20% equity built up in my home but still have PMI of $150 per month. Is refinancing my best bet to remove this?

I have a 30-year FHA loan at 4.125% with a loan balance of approximately $125,000 and a market value of $165,000, my monthly payment is $1,050 / month. I hate paying for private mortgage insurance (PMI) and have contacted my lender, Bancorp South, to eliminate this premium because my current market value less mortgage balance results in more than 20% in equity. Yet the estimate for refinancing is approximately $650 / mo. Obviously, this balance does not include insurance or PMI. Can I save money refinancing now and how do I get rid of my private mortgage insurance expense?

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  Answers  |  1

November 15, 2016

With your rate at 4.125% and with having more than 20% equity, you might consider refinancing to lower the rate and eliminate the mortgage insurance all at the same time, you might ask your present lender for some options to review first.

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