Author Topic: Refinancing out of PMI  (Read 550 times)


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Refinancing out of PMI
« on: July 30, 2019, 10:31:27 AM »

I am relatively new to the FIRE movement and purchased my home 2 years ago using a 3.5% down FHA loan.  Kind of kicking myself for not getting creative to avoid PMI.  Is there any way I can refinance now without 80% equity yet to rid myself of PMI? 

Or do I simply have to stash any extra cash towards my mortgage and finance in roughly 2 years when that is the case?  Trying to take advantage of the low rates currently.

Thanks in advance!

A Fella from Stella

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Re: Refinancing out of PMI
« Reply #1 on: July 30, 2019, 12:17:23 PM »
If the value went up to the point you have 20% or more, then you might be able to just get an appraisal, but definitely get out of the PMI.

My cousin did this to ditch his 2nd mortgage (got the second to avoid PMI, but then had 2 payments, one with a higher rate). After 4 years, the value went from something like $100,000 to $125,000, so he re-financed and got a new primary mortgage, which paid off the 2nd mortgage.

Tyler durden

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Re: Refinancing out of PMI
« Reply #2 on: July 30, 2019, 04:22:08 PM »
In short - no. You need the equity. Either through appreciating or you adding in more to principal. Remember equity will be based on what the bank appraised the house for so even if you think your at 80% bank has final say

Good mindset though as getting out of PMI is definitely to your benefit