Even though the rate is the same or slightly higher, not having to pay the mortgage insurance is a good size saving for many clients that presently have FHA mortgages. A few weeks ago I did a blog on this topic and many have communicated with me to see if it is worthwhile.
The key is, has the value increased enough to be able to avoid mortgage insurance all together and refinance doing a conventional mortgage. Right now, half the time it makes sense, but when it makes sense, folks can end up saving thousands of dollars off the life of the loan.
FHA will see many of their loans paid off early, especially the ones that were written that will not allow the mortgage insurance to be eliminated for the life of the loan.
