Financing in Phoenix>Question Details

trainorsd, Home Owner in Phoenix, AZ

can I refinance my 30 year loan to a 15 year loan and get rid of pmi?

Asked by trainorsd, Phoenix, AZ Mon Feb 11, 2013

I refinanced last year to drop my interest rate 1.5% I'm now at 3.67% interest
30 year loan $1163 payment with $173 pmi payment. Home bought for $175,000 16 months ago and is now around $230,00 to $250,000
I would like to shorten my loan and save money or pay the same but be done in 15 years

Help the community by answering this question:


It certainly appears as if you would be able to avoid PMI if you refinanced. You can't improve much on the rate you have now if you stick with a 30 year, however if you refinanced to a 15 year you should be able to lower the rate quite a bit.

I'dlvoe the opportunity to quote you a rate and review your options with you.

Feel free to contact me at 866-936-5363 ext 278 or via email at

1 vote Thank Flag Link Thu Feb 14, 2013
Hi rainorsd,

Based on your numbers, yes, provided you qualify, you can refinance your current loan from a 30 year to a 15 year fixed rate and get rid of your monthly mortgage insurance.

We also have a loan program where there is no monthly mortgage insurance, even if you have less than 20% equity in your property. Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!
Web Reference:
0 votes Thank Flag Link Wed Feb 13, 2013
Yes you absolutely can refinance to a 15 year term and get your PMI removed if you have 20% or more equity in the home. Please contact me if you would like a rate quote. Thank you!
0 votes Thank Flag Link Tue Feb 12, 2013
Depending on your current loan balance this may be possible. You will have to be at 80% loan-to-value (LTV) or less in order to remove PMI. What is your current loan balance - I'm happy to send you a FREE sales comparison report for your property if you wish. Please reach out to me if so, thank you!
Web Reference:
0 votes Thank Flag Link Mon Feb 11, 2013
Contact a lender. I can supply you with the contact for a great one.
Contact me if you would life her contact info.

Ryan Buckley Realtor®
Turning your Dream into an Address
Coldwell Banker Residential Brokerage
twitter @rcoldwellbanker
0 votes Thank Flag Link Mon Feb 11, 2013
Hi Trainorsd:

You do not give a loan amount, nor do you tell us if your stated payment includes taxes, homeowners insurance or the PMI payment, so hard to give you exact numbers.

Changing your mortgage loan to a 15-year from a 30-year will lower your PMI by about 10 basis points (for instance, if annual rate is .53 now, would go down to about .41). Not enough to justify refinancing by itself.

Home values have risen considerably in Phoenix over the past year, so, as Larry indicates, if your loan amount is now less than 80% of your home's value, it should be possible to get rid of the mortgage insurance. However, one of the great fallacies still out there is a homeowner can get rid of mortgage insurance just because the value of their home has gone up.

The Homeowners Protection Act of 1998 (what a horribly misleading name) mandates that any loan taken out after July 29, 1999 (virtually every home loan out there) can get the mortgage insurance cancelled when the ORIGINAL VALUE loan-to-value drops below 78%. So, unless you have paid your loan down to 78% of the $175,000 purchase price, the only way to get rid of the mortgage insurance is to refinance.

I hope that helps. It is a complicated area of home financing. Please contact me should you need further assistance.

Bill Parker, Loan Officer
AZ Lic# 09011570
NMLS #223607
CPA--Licensed, no longer practicing

GenCor Mortgage Inc.
15730 N. 83rd Way, Suite 103
Scottsdale, AZ 85260
(O) 480-525-8496, EXT 743; (M) 602-565-3646; (F) 480-436-5226

MISSION STATEMENT: To create an unbelievably enjoyable experience for my clients, while guiding them through the most important financial transactions of their personal lives. My clients know me as their Mortgage Lender for Life. I truly appreciate your referrals.

If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.
Red Adair, Oil well firefighter
0 votes Thank Flag Link Mon Feb 11, 2013
A quick way to answer you -

What is your current Loan Balance? We need to get your Loan to Value to 80% to remove the MI.

It is always a great idea to shorten your loan term if your goal is to pay down principle quicker than a 30 or a 20 - you will pay much less interest.
0 votes Thank Flag Link Mon Feb 11, 2013
Changing over to a 15 year loan rather than a 30 year loan isn't going to affect your PMI. When you refinanced an appraisal was done and if it came in at $230,000 or above then you have a valid case to present to your lender to drop the PMI. You should contact them to discuss the matter.

Not certain if another refi makes a lot of sense you'd have to run the numbers as there are expenses involved. A quick look indcates that currently 15 year fixed rate refi's are right around 3% and you could always simply start adding $500 or whatever you're comfortable with in additional principal when you make a payment which would have the same effect.
0 votes Thank Flag Link Mon Feb 11, 2013
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