FHA and USDA loans are great for first-time borrowers to get into a home for little or no down payment. But, these government loans come with a catch - PMI. PMI not only has a stiff upfront insurance pre-payment fee, but can cost hundreds of dollars a month for the life of the loan, regardless of equity. If you've been in your FHA or USDA loan for more than a couple of years, your equity may now be enough to get rid of PMI by switching to a conventional refi, as long as your Lone-to-Value (LTV) is 80% or lower. Home values in WA have been increasing by as much as 12-15% a year.
In about 15 minutes working with you and your mortgage statement, I can tell you if you qualify to refi with a conventional loan.
