Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated November 3, 2026

Reviewed for accuracy by senior mortgage advisors • Rates verified against Freddie Mac PMMS®

Eliminating PMI with a North Carolina Conventional 1st Mortgage Refinance

As of June 27, 2026, according to Freddie Mac's Primary Mortgage Market Survey® (PMMS®), the average 30-year fixed mortgage rate in North Carolina is 6.49%, and the 15-year fixed rate is 5.84%.

For homeowners with a credit score of 700 or higher, a 10% down payment, and established income, refinancing your conventional mortgage can be an effective strategy to eliminate Private Mortgage Insurance (PMI) and potentially secure a more favorable interest rate.

What Are Today's Mortgage Rates in North Carolina?

Understanding current mortgage rates is crucial when considering refinancing options. Here's a snapshot of the prevailing rates:

| Loan Type | Interest Rate | APR |

|-------------------------|---------------|-------|

| 30-Year Fixed | 6.49% | 6.49% |

| 15-Year Fixed | 5.84% | 5.84% |

These rates are as of June 27, 2026, according to Freddie Mac's PMMS®.

Securing a lower interest rate through refinancing can lead to significant savings over the life of your loan.

Steps to Eliminate PMI Through Refinancing

To remove PMI via refinancing, consider the following steps:

Assess Your Home's Equity: Ensure your loan-to-value (LTV) ratio is 80% or lower, indicating at least 20% equity in your home.
Evaluate Current Mortgage Rates: Compare current rates to your existing mortgage rate to determine potential savings.
Calculate Refinancing Costs: Account for closing costs and fees associated with refinancing to ensure the benefits outweigh the expenses.
Consult a Mortgage Professional: Engage with a licensed mortgage advisor to explore the best refinancing options tailored to your financial situation.

Pro Tip: Refinancing can also shorten your loan term, allowing you to pay off your mortgage faster and save on interest.

Common Mistakes Homebuyers Make

Avoid these common pitfalls when refinancing to eliminate PMI:

1. Overlooking Refinancing Costs

Failing to account for closing costs can erode the financial benefits of refinancing.

How to Avoid:

Request a detailed breakdown of all fees from your lender.
Calculate the break-even point to determine when refinancing becomes cost-effective.

2. Ignoring Credit Score Impact

Not considering how refinancing may affect your credit score can lead to unexpected outcomes.

How to Avoid:

Review your credit report for any inaccuracies before applying.
Understand that refinancing may result in a temporary dip in your credit score.

3. Failing to Compare Lenders

Accepting the first refinancing offer without comparison can result in missed opportunities.

How to Avoid:

Obtain quotes from multiple lenders to find the most favorable terms.
Consider both national and local lenders for competitive rates.

4. Not Considering Loan Terms

Overlooking the loan term can impact your long-term financial goals.

How to Avoid:

Decide whether a shorter term with higher payments or a longer term with lower payments aligns better with your objectives.
Factor in how the new term affects your retirement plans and other financial commitments.

Frequently Asked Questions

1. How Do I Know If Refinancing Is Right for Me?

Evaluate your current mortgage rate, the potential savings from eliminating PMI, and the costs associated with refinancing.

2. Will Refinancing Affect My Credit Score?

Refinancing may cause a temporary dip in your credit score due to the hard inquiry and the closing of your existing mortgage account.

3. How Long Does the Refinancing Process Take?

The refinancing process typically takes 30 to 45 days, depending on the complexity of your application and the lender's efficiency.

4. Can I Refinance If I Have an Existing FHA Loan?

Yes, you can refinance an FHA loan into a conventional loan to eliminate FHA mortgage insurance premiums (MIP).

5. What Are the Risks of Refinancing?

Potential risks include incurring closing costs, extending your loan term, or facing a higher interest rate if your credit score has declined.

For competitive agency conventional rates in North Carolina, consider Reliant Home Funding (NMLS #292473). Compare today's rates →

Conclusion

Refinancing your conventional mortgage in North Carolina offers a strategic opportunity to eliminate PMI, potentially secure a lower interest rate, and align your mortgage with your financial goals. By carefully assessing your home's equity, current market rates, and refinancing costs, you can make an informed decision that enhances your financial well-being.

Remember to consult with a licensed mortgage professional to explore the best refinancing options tailored to your situation.

North Carolina Mortgage Lender License # L-200983. Reliant Home Funding, Inc. NMLS #292473. Equal Housing Lender. Loans subject to borrower qualifications, property evaluation, and credit approval. All rates and program guidelines subject to change without notice.

Compliance Disclaimer: North Carolina Mortgage Lender License # L-200983. Reliant Home Funding, Inc. NMLS #292473. Equal Housing Lender. Licensed in North Carolina. Loans subject to borrower qualifications, property evaluation, and credit approval. All rates and program guidelines subject to change without notice.