Wisconsin conventional refinance — better terms, no more mortgage insurance
A conventional refinance is the workhorse: lower your rate, change your term, drop private mortgage insurance (PMI), or leave FHA mortgage insurance behind for good. I’ll show you what it’s worth in dollars, and whether now is the right time.
What is a conventional refinance?
A conventional refinance replaces your current mortgage, whether it’s conventional, FHA or another type, with a conventional loan that isn’t backed by the government. It works best with solid credit and some equity.
A conventional refinance is often the right fit if you:
- Pay PMI and your home is now worth more
- Have an FHA loan and want to get rid of FHA mortgage insurance
- Have good credit and want the lowest pricing
- Want a shorter term, like 15 or 20 years
- Want cash out with about 20% or more equity left over
How to get rid of mortgage insurance
Mortgage insurance protects the lender, not you, so getting rid of it is pure savings.
| Conventional PMI | FHA MIP | |
|---|---|---|
| Can it come off? | Yes. You can request removal at 20% equity and it drops automatically near 22% | On most FHA loans, not without refinancing |
| Fastest way off | If your home’s value jumped, a refinance at or below 80% of the new value drops it now | Refinance into a conventional loan at about 20% equity |
Example: your home is now worth $350,000 and you owe $270,000. That’s about 77% of the value, so a conventional refinance would carry no mortgage insurance. If you pay $150 a month for it today, that’s $1,800 a year back, before any rate change.
Conventional refinance requirements
| Requirement | What lenders look at |
|---|---|
| Credit score | Usually 620+. Pricing improves in tiers at 680, 700, 720 and 740+ |
| Equity | Rate-and-term often up to about 95% of the value, with PMI above 80%. Cash-out up to 80% |
| Debt-to-income (DTI) | Generally up to about 45%, sometimes higher with strong credit and reserves |
| Income | Documented income, like pay stubs and W-2s, or tax returns if you’re self-employed |
| Home value | Usually an appraisal, though some loans qualify for a waiver |
Conventional vs. FHA Streamline vs. VA IRRRL
| Conventional | FHA Streamline | VA IRRRL | |
|---|---|---|---|
| Who it’s for | Any homeowner who qualifies | Current FHA borrowers | Current VA borrowers |
| Mortgage insurance | None at 80% or less | FHA premium stays | None (a 0.5% funding fee unless exempt) |
| Appraisal & income docs | Usually required | Usually not | Usually not |
| Cash out | Available | No | No |
Already in an FHA or VA loan? A streamline may be cheaper: FHA Streamline → · VA IRRRL →
How a conventional refinance works
Free refinance review
Send your current mortgage statement. I’ll estimate your equity, check PMI removal and run your break-even.
Apply, appraise & lock
We apply, confirm your home’s value and lock your rate when the timing is right.
Close
Most conventional refinances close in about 30 days.
Your local Wisconsin refinance lender
I’m Adam Zeman, a licensed loan officer with Edge Home Finance in Wauwatosa, with 15+ years helping Wisconsin homeowners. I shop 130+ lenders, compare conventional against your FHA or VA options, and tell you straight if staying put is the smarter move. Serving Milwaukee, Waukesha, Wauwatosa, Madison and all of Wisconsin.
Conventional refinance FAQ
What is a conventional refinance?+
It’s a refinance into a conventional loan, one that isn’t backed by FHA, VA or USDA. You can refinance from any loan type into conventional if you qualify.
Can I refinance from FHA to conventional?+
Yes, and it’s the usual way to get rid of FHA mortgage insurance. With about 20% equity, your new conventional loan would carry no mortgage insurance at all.
How do I remove PMI by refinancing?+
If your new loan would be at or below 80% of your home’s current value, a conventional refinance carries no PMI. Rising home values often get Wisconsin homeowners there sooner than they expect.
What credit score do I need for a conventional refinance?+
Usually at least 620. Pricing improves in tiers at 680, 700, 720 and 740+, so a small score bump can matter.
Do I need an appraisal?+
Usually, though some conventional refinances qualify for an appraisal waiver based on the lender’s automated review.
Is refinancing worth it right now?+
It is if you’ll stay in the home past your break-even point, which is your closing costs divided by your monthly savings. I’ll run it for you and say so if waiting makes more sense.
Can I take cash out with a conventional refinance?+
Yes. A conventional cash-out refinance generally lets you borrow up to 80% of your home’s value. If your current rate is low, compare it with a HELOC first.
Go deeper: Conventional refinance: top 3 questions · Conventional loans · Rate-and-term refinance · Cash-out refinance
Have a question about a conventional refinance?
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Find Out What You’d Actually Save
Get your free refinance analysis. I’ll review your current loan, check whether your mortgage insurance can go, and tell you straight if staying put is the smarter move.