We are refinancing to a FHA mortgage, and I have heard that they do not require PMI insurance, is this true?
2006-11-16 02:26:20 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I'm not sure. I would check the FannieMae website, tehy specialize in these types and other types of loans. I think they may have a chart that compares and contrasts the different pros and cons of each type of loan that they offer. If not look for your local FannieMae provider and I know that they have a detailed book about the size of a coloring book that will tell you everything you need to know and they will be happy to counsel you on your options. Our local place is called Wyatt Mortgage.
2006-11-16 02:35:42 · answer #1 · answered by lvminole 4 · 0⤊ 0⤋
FHA is for buying a house. I don't think you can re-fi from conventional to FHA.
Also, when buying a house, the PMI (Private Mortgage Insurance) is what insures conventional loans. FHA loans are insured with what's called MIP (Mortgage Insurance Premium). With less than 20% equity, it's gotta get paid to somebody.
Make sure that the lender you're using is reputable - some will re-fi you, just to make their money even if there is little or no benefit to you.
2006-11-16 10:35:11 · answer #2 · answered by teran_realtor 7 · 0⤊ 0⤋