If you have any other questions, or would like to run your scenario by me, please email or call me.
Every lender's requirements will vary, however, you can obtain conventional financing with a 620+ credit score and possibly remove monthly PMI payments even if you don't have 20% equity. Not to mention the savings would most definitely increase by avoiding FHA.
While we'd need discuss the specifics of your current mortgage, I'd recommend a conventional 26 year or 27 year fixed-rate, so you wouldn't be adding on any additional years of payments AND just picking up where you left off, not to mention at a lower interest rate. Fact of the matter is your mortgage is an extremely powerful tool and, when structured correctly, can provide some truly amazing benefits.
If you'd like to discuss your scenario in greater depth, I'd welcome the opportunity to weigh out real options that will create both short term and term term benefits. Please contact me at your earliest convenience via phone or email; whichever is easiest for you.
Paul F. Marzolla
Sr. Mortgage Consultant
This is in addition to the facts that the available rates just jumped up last week, and the new mortgage insurance is higher than you are already paying(which you already know).
You would qualify in October of 2014 to drop the mortgage insurance, after 60 payments and if the loan balance is 78% of the home value.