Fha To Conventional Refinance Calculator
If you’re currently paying for an FHA loan, chances are you’re also paying mortgage insurance premiums (MIP). Over time, these can add up—especially when you’ve built equity in your home. That’s where an FHA to Conventional Refinance Calculator becomes incredibly useful.
This simple yet powerful tool helps you determine whether switching from an FHA loan to a conventional mortgage could save you money in the long run. It compares your current loan costs with potential new terms, helping you make a confident, data-backed decision before refinancing.
Whether you’re trying to remove mortgage insurance, lower your interest rate, or shorten your loan term, this calculator is your first step toward smarter financial planning.
How the FHA to Conventional Refinance Calculator Works
The calculator uses your current loan details and your new potential loan terms to estimate key figures like:
- New Monthly Payment
- New Loan Balance
- Estimated Interest Savings
- Total Savings Over Time
- Break-even Point (when your refinance costs are offset by your savings)
By inputting your data accurately, you can instantly see whether refinancing from an FHA to a conventional loan is beneficial based on your unique situation.
Step-by-Step: How to Use the FHA to Conventional Refinance Calculator
Follow these simple steps to get accurate results:
- Enter Your Current Loan Details
- Original loan amount
- Current balance
- Current interest rate
- Remaining loan term
- Monthly mortgage insurance (if any)
- Input New Conventional Loan Terms
- Estimated new interest rate
- New loan term (e.g., 15 or 30 years)
- Closing costs for refinancing
- Add Property and Equity Information
- Current home value
- Expected appraisal amount (to calculate loan-to-value ratio)
- Click ‘Calculate’
The tool will display your estimated monthly payment, total interest savings, and break-even point.
Practical Example
Let’s say:
- You currently owe $250,000 on your FHA loan with a 4.5% interest rate.
- You have 25 years left on the loan.
- You pay $150/month in mortgage insurance.
- Your home is now valued at $320,000.
- You plan to refinance into a conventional loan at 3.9% interest with $3,000 in closing costs.
After running these numbers through the FHA to Conventional Refinance Calculator, you find:
- Your new monthly payment drops by $220.
- You no longer pay mortgage insurance.
- You’ll recoup your closing costs in 14 months.
- Over the life of the loan, you’ll save more than $35,000 in interest and MIP.
That’s a clear sign that refinancing could be a smart financial move.
Why Refinance from FHA to Conventional?
There are several reasons homeowners make the switch:
✅ Remove Mortgage Insurance (MIP) – FHA loans require MIP for the entire loan duration (unless you refinance). Conventional loans allow you to drop PMI once you reach 20% equity.
✅ Lower Interest Rate – If your credit has improved since you got your FHA loan, you might qualify for a lower conventional rate.
✅ Shorten Loan Term – Refinancing allows you to move from a 30-year term to a 15-year one, paying off your home faster.
✅ Increase Home Equity Faster – Lower payments and no MIP mean more of your money goes toward your principal balance.
✅ More Flexibility – Conventional loans often come with fewer restrictions and lower long-term costs.
Key Features of the FHA to Conventional Refinance Calculator
- 💰 Instant results – No waiting for manual calculations.
- 📊 Comprehensive savings summary – Displays potential monthly and lifetime savings.
- 🏠 Equity-based calculations – Helps you see how your home value affects your refinance options.
- 📉 Interest comparison chart – Visualizes old vs. new interest costs.
- 🔒 Completely free and secure – No sign-up or credit check required.
Benefits of Using the Calculator Before Refinancing
Using an FHA to Conventional Refinance Calculator before contacting lenders helps you:
- Understand if refinancing is financially beneficial.
- Avoid hidden costs or unfavorable terms.
- Prepare documents confidently for lender discussions.
- Plan the best refinance timing based on your home equity growth.
- Make an informed choice—without pressure or confusion.
Tips for Getting the Best Refinance Deal
- Check Your Credit Score – Aim for a score above 680 to qualify for better rates.
- Compare Multiple Lenders – Even a small rate difference can save thousands.
- Calculate the Break-even Point – Make sure you’ll stay in the home long enough to recover closing costs.
- Watch Market Trends – Refinancing makes the most sense when rates are low.
- Consider a Shorter Term – A 15-year loan may increase payments slightly but save significant interest.
Common Mistakes to Avoid
❌ Refinancing too early without enough equity.
❌ Ignoring closing costs or appraisal fees.
❌ Choosing a longer loan term that increases total interest paid.
❌ Not comparing offers from multiple lenders.
❌ Forgetting to account for property taxes and insurance in your budget.
FAQs about FHA to Conventional Refinance Calculator
1. What is the main goal of this calculator?
It helps you determine whether refinancing your FHA loan into a conventional one will save you money overall.
2. Do I need 20% equity to refinance?
Typically yes, but some lenders allow refinancing with slightly less, depending on credit score and other factors.
3. Can I remove my FHA mortgage insurance without refinancing?
No, refinancing into a conventional loan is usually the only way to eliminate MIP.
4. Does the calculator require personal data?
No, it only needs financial and loan-related figures for estimation.
5. Is refinancing worth it in 2025?
It depends on your current rate, home value, and equity. Use the calculator to find out.
6. What are closing costs for FHA to conventional refinance?
They typically range between 2–5% of your loan balance.
7. Will refinancing affect my credit score?
It may cause a temporary, small drop due to a hard inquiry, but it’s usually minimal.
8. How long does the refinance process take?
Usually between 30–45 days from application to closing.
9. Can I refinance even with a lower credit score?
Yes, though your interest rate might be slightly higher.
10. How often can I refinance my mortgage?
There’s no limit, but refinancing too frequently might not be cost-effective.
11. Do I need an appraisal?
Yes, most lenders require a new appraisal to confirm your home’s current market value.
12. What’s the best time to refinance?
When mortgage rates drop and your home’s equity has increased significantly.
13. Can I include closing costs in the new loan?
Yes, most lenders let you roll them into your refinance amount.
14. Will I get a tax deduction for refinance interest?
Interest on your primary mortgage may still be tax-deductible—check with a tax professional.
15. Does refinancing reset my loan term?
Yes, but you can choose a shorter term to minimize total interest.
16. What’s the minimum credit score for conventional refinance?
Usually 620 or higher.
17. What if I plan to sell my home soon?
Refinancing may not be worthwhile if you plan to sell within a year or two.
18. Can I refinance from FHA to VA or USDA loan?
Yes, but eligibility requirements differ.
19. How much equity do I need to avoid PMI on the new loan?
At least 20% equity is required to remove private mortgage insurance.
20. Is this calculator 100% accurate?
It provides close estimates but always verify final figures with your lender.
Conclusion
The FHA to Conventional Refinance Calculator is your go-to tool for making smart, informed mortgage decisions. With just a few numbers, you can see potential savings, new payment amounts, and the best time to refinance.
If you’re tired of paying mortgage insurance or want to take advantage of lower interest rates, this calculator is the perfect starting point toward financial freedom.