Refinance into FHA or conventional
Hi BP community!
I'm searching for any and all advice on refinancing my primary residence (single-family home). I've gotten quotes from a couple of different lenders and with a low-interest rate of 2.99% it would appear that we will save over $200/month by refinancing. The home was purchased with a 3.5% down FHA loan 8 months ago and now the LTV is already at 89% because home prices in our neighborhood are skyrocketing.
Two options give us very similar monthly payments but the advice I am getting from the lenders feels one-sided and untrustworthy.
1: The FHA refinance guy is telling me that the FHA streamline refinance is clearly the better loan option because of tax credits on PMI and the fact that we are not at the coveted 75% LTV mark yet.
2: Another lender who suggests a conventional loan is telling me that it's way better to get out of an FHA loan at a low rate so that the PMI can fall off at 75% LTV and still be locked in at the low rate.
Ultimately we plan on keeping the home for a long time but we want to make whatever move is likely to set us up for the best financing opportunities when we're ready to purchase our first income property (hopefully later this year). Other things we've discussed is refinancing the home ONLY in my wife's name if that would somehow show less debt on my credit? Perhaps low-interest rates are here to stay and we should wait?
Thanks in advance!