Save $400+/Month with a Conventional Refinance: This Couple Did It—Here’s How
- By Jim Blackburn
- on
Client Profile
- Names: Jasmine & Tyler B.
- Ages: 34 & 36
- Location: Denver, CO
- Home Type: 3-bed single-family home
- Original Loan: FHA at 4.75% with monthly PMI
- New Loan: Conventional 30-Year Fixed at 5.375%
- Equity at Time of Refi: 21%
- Monthly Savings: $412
The Challenge
Jasmine and Tyler had purchased their home three years earlier with an FHA loan. While the interest rate was decent, the $188/month in mortgage insurance was dragging down their cash flow.
They’d improved their credit and their home had appreciated—but they weren’t sure if they had enough equity to drop PMI or if it made sense to refinance.
The Strategy
We ran a value check and found their home had appreciated from $385K to $495K—giving them enough equity to refinance into a conventional loan with no PMI.
We structured:
- New 30-year conventional fixed loan
- No private mortgage insurance
- Lender credit to offset closing costs
- Slightly higher rate but significantly lower monthly cost
The Outcome
- Monthly mortgage dropped from $2,215 to $1,803
- PMI was completely eliminated
- Closing costs were fully offset through lender credits
- The couple is saving $412/month, which they now invest in retirement accounts
Quote from Jasmine:
“We didn’t know we could get rid of PMI. We were just hoping to shave off $100. This refinance gave us so much more breathing room.”
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