Can I Refinance Just to Remove My Private Mortgage Insurance (PMI) in Florida?
Yes, you can refinance specifically to remove mortgage insurance in Florida. By using your home's newly appreciated market value, you can refinance into a new conventional loan. If your new loan amount is 80% or less of the home's current value, the PMI is permanently eliminated.
Mortgage insurance protects the lender, not you, and it adds to your payment every month. If you put less than 10% down on an FHA loan made in the last decade, you'll pay Mortgage Insurance Premiums (MIP) for the life of the loan. Refinancing is the way to remove it. As an independent Florida mortgage broker, AAA Capital Funding specializes in using your home's new equity to refinance you out of that MIP payment. It's worth checking whether rolling the closing costs into that refinance still leaves you ahead.
The Mechanics of Destroying Mortgage Insurance
1. The FHA MIP Trap
If you closed an FHA loan with a minimum 3.5% down payment anytime after 2013, your mortgage insurance is permanent. It will never automatically drop off, even if you pay the house down to zero. You must execute a Conventional Refinance to eliminate the fee.
2. The Appreciation Advantage
Florida real estate has seen historic appreciation. You don't have to wait 10 years to pay down your loan balance to reach 20% equity. We order a new appraisal, and if the home's new market value pushes your Loan-to-Value (LTV) to 80% or below, the PMI comes off.
3. The Conventional Option
If you already have a Conventional loan, you can petition your current servicer to remove the PMI based on a new appraisal without refinancing. However, if current interest rates are lower than your existing rate, a refinance allows you to drop the PMI and secure a lower rate simultaneously.
Stop the Bleeding. Reclaim Your Cash.
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We'll run the numbers on your home's current estimated value to see if you have the 20% equity required to kill the PMI.
Every file is different.
We'll give you a straight answer based on your real numbers, even if the answer is no.
Call 888-601-8344, under ten minutes, answered the same day. No application, no hard credit inquiry.
Text 954-816-8820 if that's easier.
AAA Capital Funding, Inc. · NMLS #374739 · Jason J. Sarji, NMLS #374700