If you have an FHA loan or your down payment was below 20% of your home value, you may have been required to pay for mortgage insurance. By refinancing your mortgage, you can reduce or even completely get rid of mortgage insurance altogether.
What would be my new monthly payment be after removing mortgage insurance?
Your exact monthly payment depends on the interest rate you qualify for, the term you select, and other factors. You can use our mortgage payment calculator to figure out the difference between your old loan with mortgage insurance and a new one without.
Frequently Asked Questions
How do I get rid of mortgage insurance?
- If you have FHA mortgage insurance, the best way to eliminate it is by refinancing into a conventional, non FHA-insured mortgage, assuming you now have built up equity higher than 20% of your home value.
- If you have private mortgage insurance (PMI) due to a low down payment, you can reduce or get rid of PMI in a variety of ways, including re-appraisal or refinancing. Refinancing could also reduce your interest rate, saving you extra money.