Can I refinance my current FHA loan to a conventional after one year?

Answer

It’s possible for you to refinance your FHA loan to a conventional loan after one year, but just because you can do so doesn’t necessarily mean that you should. First make sure you can refinance now by asking your lender. Not all deals are the same. Then, you should determine whether it makes sense financially for you to refinance at this time.

What to consider?

Run the numbers to determine how much you’ll save by refinancing. You might be better off, considering closing costs, even with extra insurance and fees you might be paying under FHA, to keep things as they are for now.

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See if it make sense

It usually makes sense to refinance when you have 20% equity in your home. That way you can stop paying MIP (the mortgage insurance premium required under FHA loans and not have to pay PMI (private mortgage insurance) under a conventional loan, either.

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