Can I refinance to remove PMI?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes. If your home has gained enough value to reach 20% equity, a refinance into a new conventional loan removes PMI. This is common in Florida given recent appreciation.
On a conventional loan you can often just request PMI cancellation at 20% equity without refinancing, which is cheaper. But to escape FHA's lifelong mortgage insurance, refinancing to conventional is usually the move. We'll run both.
A common reason to refinance
Yes. If your home has gained value or you have paid down your balance, refinancing into a new conventional loan with 20% equity removes private mortgage insurance. That can lower your payment.
It is especially useful for FHA borrowers, since FHA insurance often cannot be canceled any other way.
Weigh the costs
Refinancing has closing costs, so the PMI savings should outweigh them within a reasonable time. If rates have risen since you bought, the math may not work.
We run the full comparison for you. Apply now and we will tell you if refinancing to drop PMI pays off.