There is a trade off when you go FHA vs. Conforming. The MI is a big factor. You can request the MI to be removed once the loan has been in servicing over 2 yrs and the LTV is below 78% on an outstanding balance/appraised value scenario. Everyone thinks it is 80%, but to remove it by request, most MI companies require 78% or less. BTW, you will have to pay for an appraisal to verify the LTV. FHA has a bit lower rate due to the backing of the FHA loans.

So you either stay in the FHA loan and pay the MI monthly or refinance into a new loan that will not have MI. This depends on the time you have been in the home and paying the mtg or the rate you have on your current home and the rate you can obtain today on a refi. Luckily the economy hasn't taken off and rate haven't climbed like so many have forecasted.

You can refinance at the current rate and ask to have the term be set to your current yrs on your loan. i.e. 27 yrs left on your mtg. new loan amortized over 27yrs instead of 30. This is if your plan is to go forward and not backwards.

Talk to your trusted mortgage loan officer and hope he knows more than just how to take an application...