Refinance for freedom, savings, or stability — without resetting your financial progress.

If you’re in a conventional mortgage, refinancing can be one of the smartest financial decisions you make — even if interest rates haven’t dropped dramatically.

👉 Whether your goal is to lower your monthly payment, lock in a fixed rate, or eliminate mortgage insurance (PMI), a conventional refinance gives you flexibility and control.

Here’s how a conventional rate-and-term refinance works, when it makes sense, and how to know if you qualify in 2025.

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✅ What Is a Conventional Refinance?

A conventional refinance is when you replace your existing mortgage (usually a Fannie Mae or Freddie Mac loan) with a new one that has:

• A lower interest rate
• A shorter or longer term
• A different loan structure (e.g., ARM → fixed rate)
• No private mortgage insurance (PMI) if you’ve built enough equity

📘 It’s not a cash-out loan — the goal here is to reduce costs or align with your financial goals.

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💸 Can You Refinance Just to Drop PMI?

Yes — and it’s one of the most powerful use cases for a conventional refi.

If your original loan had less than 20% down, you may be paying monthly PMI. But once your equity reaches 20%, you can refinance to:

• Eliminate that PMI
• Save $100–$300/month, depending on your loan amount
• Lock in better terms while doing so

✅ You can even use a new appraisal to confirm your updated home value and equity position.

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🔄 What About Lowering Your Rate?

Even if rates are slightly higher than your current one, refinancing could make sense if:

• You’re removing PMI
• You’re switching to a shorter term to save on interest
• You want to refinance from an ARM to a fixed rate
• You’re extending your term to lower your monthly payment

💡 It’s not just about the rate — it’s about monthly savings, long-term interest, and loan structure.

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📋 Who Qualifies for a Conventional Refinance?

Most lenders look for:

• 620+ credit score (better pricing at 680–740+)
• A DTI ratio under 45%
• At least 3–5% equity, or 20%+ if you want to remove PMI
• Solid employment and income history (2 years preferred)

We’ll walk through the numbers and let you know exactly where you stand — and what to improve, if needed.

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📊 Example: Dropping PMI & Restructuring a Loan

Scenario	Before Refi	After Refi
Loan Balance	$350,000	$350,000
Rate	6.375%	6.250%
PMI	$225/mo	$0
Term	27 years left	30 years
Monthly Payment	$2,435	$2,055
Total Monthly Savings	—	$380

Even without a huge rate drop, eliminating PMI + slight term restructure = big savings.

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🏠 Best Times to Consider a Conventional Refinance

✅ Your credit score has improved since buying
✅ Your home value has gone up, increasing equity
✅ You’re tired of paying PMI
✅ You want a longer or shorter term
✅ You want to stabilize your payment (ARM → fixed)

💬 We’ll compare your current loan to multiple new structures — and recommend what fits your goals best.

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🏢 Why PRMI?

At PRMI, we:

• Offer fast, in-house processing and underwriting
• Track your PMI removal eligibility
• Run your break-even timeline and savings scenarios
• Show you options that fit your budget and timeline

We’re not here to sell you a refi — we’re here to make sure it’s smart and strategic.

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👇 Ready to Drop PMI or Restructure Your Loan?

Let’s run a custom comparison and show you exactly how a conventional refinance could improve your mortgage — even in today’s market.