Will Refinancing Lower My PMI?
Yes. If done properly, refinancing will most likely decrease the cost of your private mortgage insurance and may even allow you to stop paying for PMI completely. If your credit score has improved and the amount of your new loan is small enough, then you should be qualified for a lower PMI. PMI is designed to protect lenders if you default on your loan. When you lower the risk of that default, you will also lower the cost of PMI.
Additionally, if you have built up enough equity, you can avoid PMI entirely on your new loan. Generally, if you refinance after building up at least 20% equity, you should be able to forego paying for PMI on the new loan.
- What Does It Mean to Refinance a Mortgage?
- How Does My Credit Score Affect Refinancing?
- Is Refinancing Available for FHA, VA, Jumbo, or USDA Loans?
- How Much Equity Do I Need to Have Before Refinancing?
- How Do I Refinance My Mortgage?
- How Do I Know If I Am Eligible to Refinance My Mortgage?
- What Are Some of the Benefits of Refinancing?
- When Should I Refinance My Mortgage?
- What Are the Disadvantages of Mortgage Refinancing through a Third-Party Mortgage Broker?
- What Are the Costs and Fees of Refinancing?
- Should I Refinance If I Only Plan on Living in My Home for a Few More Years?