Can I dodge FHA insurance by refinancing into another loan type?

Yes. you can refinance into a Conventional loan. Conventional loans have NO MIP. Unless you have 20% equity in the property there will be PMI, but less than FHA's monthly mortgage insurance. www.imortgagelending.com

As the others have mentioned, the answer is yes. You will have many options with a conventional loan for PMI, if applicable at all. If you need information as far as what the conventional loan rates and PMI premiums would be for your scenario - feel free to reach out. - David

You have received some great advice thus far. I would add that depending on the value of your home, you may be able to do an 80% first mortgage and a home equity loan (or line of credit) for the remaining balance to avoid MI. This strategy works well if you don't mind two payments which you can set up with your first mortgage payment on the 1st and your home equity payment in the middle of the month. If you currently have an FHA loan and it was originated before May 2009, you can refinance this loan with a substantially lowered FHA MI premium. I would be happy to discuss your options with you.

Yes.. and even if you don't have sufficient equity to avoid MI, your still better off since the MI on conventional loan products are much less than FHA.. This is assuming your existing FHA loan was initiated after June 2009.. if it was initiated prior to June 2009, then FHA has reduced MI options available to you where you can refinance without an appraisal, and the upfront MI is very inexpensive.. It's best you contact a local mortgage broker and let him put together both loan scenarios.. for comparison.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

You can look at refinancing into a conventional loan, but if your loan to value is over 80% you will have to deal with mortgage insurance in one way or another. Conventional mortgage insurance is most likely going to be cheaper than FHA mortgage insurance and will drop off when your loan amortizes down to 78%. If you would like to take a look at your options feel free to contact me and I will be happy to discuss them with you.