Refinancing out of FHA to eliminate PMI
Hi guys. Most of you may not know me, so here is a quick backround:
I am 22 years old and just purchased my first home at the beginning of 2016 (Our current residence) with my older brother.
We financed through FHA at 3.8%, and a monthly PMI of $260 for the life of the loan (versus a conventional where it drops off at 20% equity)
We want to refinance out of FHA as soon as possible. It was a good way to get into a home early on (as opposed to trying to save up for a bigger down payment) - but now we are looking for ways to cut costs.
I/my brother have been toying with the idea of selling our excess toys - two motorcycles - and hitting that 20% equity mark by also getting an updated appraisal (our home value has gone up by about 20K since purchase) - is there any certain way to go about this, certain lenders you would suggest to refinance with?
I'm looking at the best ways to cut costs on our monthly mortgage so any advice from you guys would be appreciated!