Refinancing to eliminate MIP

[52cents]

I've searched the forums, found some answers but not all....

I am currently 4.5 years into a 5% fixed FHA mortgage, I was lead to believe that MIP payments would stop once 5 years had passed AND 78% of the appraised value of the house was paid. I've since found out that it is, in fact, after 78% of the original loan is paid. This sets me up for throwing over 1k a year away for the next 6+ years.

No need to give me crap about going FHA. I know more now than I did then.

Is it a no brainer to refinance the remaining loan, eliminate MIP, roll in closing costs and lock into a sub 4% fixed conventional instead? I'm pretty confident that the balance owed is less than 78% of the appraised value. My monthly payment would be lower too, but I'm not sure if this is bad in the long run.

Thanks!

[Cheddar Stacker]

I can't see a reason why this would be a bad idea. Get it done 52.

Your interest rate would go down 1% ish.
Your PMI would be eliminated.
Your monthly cash payment would likely go down sharply freeing up more funds to invest.
You might even be able to get closing costs waived in exchange for a higher interest rate, just run the numbers to see which way is better.

What are you waiting for?

[Gone Fishing]

Only reason not to is if you plan on moving in the near future.  If you post some hard numbers on your existing mortgage along with a refi quote or two, we can help you figure out the payback period.