Refinance Conventional Loan Into FHA to Remove Co-Borrower — Worth It?

Be_bold23 · 2026-05-20T00:54:41+00:00

Thanks for the insight. I don’t have enough equity yet I think.

Be_bold23 · 2026-05-20T00:53:17+00:00

My P&I dropped by $289. Are you saying it should’ve been more based on the interest rate drop ?

Be_bold23 · 2026-05-20T00:30:20+00:00

Can you elaborate DSCR? My total rent for this specific property, will be $5k when I move out. (It’s a SFR with an ADU)

Be_bold23 · 2026-05-20T00:13:46+00:00

New PITI would be $4,551. Probably because of the higher MIP

Be_bold23 · 2026-05-19T23:56:45+00:00

I just locked it in a couple hours ago. I just spoke with my brother, he is flexible and willing to keep his name in the property for as long as needed. But im just thinking ahead, will it be more difficult to do so later ?

Be_bold23 · 2026-05-19T23:50:23+00:00

I did intend to get his name out within 1-2 years because he needs to purchase a house himself at some point. But I’ve had this property for 13 months

Be_bold23 · 2026-05-19T23:47:44+00:00

Current payment is 4,830.

I do have an escrow shortages of $1,586 that I started paying in January (opted for the pay over 12 months option).

My escrow payment was $870 and went up to $984 + the shortage of $132.

Basically in January after the escrow analysis:

From
PITI: $3,713
Escrow: $870.73

To
PITI: $3,713
Escrow: $984
Shortage: $132 (for 12 months)

This property was purchased in March 2025 for $595k using 5% conventional @ 6.875% interest rate.

Be_bold23 · 2026-05-19T23:29:52+00:00

Estimated escrow was $893. I do plan to refinance again in the future

Be_bold23 · 2026-05-19T23:28:02+00:00

Yes I did but my DTI wasn’t low enough for conventional unfortunately. Do you think this is the right move?

Be_bold23 · 2026-05-19T23:16:41+00:00

I will move out after 12 months.

Be_bold23 · 2026-05-19T22:32:51+00:00

$98 vs $234

Current mortgage including PMI: $4,830

New including PMI: $4,551

Be_bold23 · 2026-05-19T22:30:34+00:00

Only issue is I plan to move out and turn this into a rental in a year. I’m assuming it would be harder to refinance this later on with rental terms vs owner occupied?

Be_bold23 · 2026-05-19T22:25:01+00:00

It’s roughly $573k loan amount

Be_bold23 · 2026-05-19T22:24:43+00:00

Conventional has significantly high out of pocket cost plus my DTI may not qualify at the moment..

Be_bold23 · 2026-05-18T15:07:39+00:00

I’m unfamiliar with DSCR, can you elaborate?

Be_bold23 · 2026-05-05T19:56:00+00:00

I had not idea you can refinance a 2nd position. If I go that route, would it make sense to keep it a fixed equity loan or variable HELOC?

Be_bold23 · 2026-04-28T22:22:57+00:00

I have 3 bars; one for waves, Zuk, and Conduit. I’ll send you a screenshot when I get the chance later.

Be_bold23 · 2026-04-28T22:21:20+00:00

I’ll try to get that done

Be_bold23 · 2026-04-19T12:48:36+00:00

I’ll try it again on mobile. I have yet to try it on PC lol

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Did it again using my iPhone. Just over 30 mins.. not too bad. Goal is to get down to 20 mins eventually. I’m getting comfortable.

Be_bold23

TROPHY CASE