A rate and term refinance allows you to lower your rate, change your loan program (e.g., 5 year ARM to a 30 year fixed) or both. If you would like to take advantage of lower rates and a different loan program this type of refinance loan is a good option.
Say you’re looking to trade your 7-year adjustable rate mortgage for long-term stability. A fresh 30-year fixed rate loan could be your best bet. If you’re not ready to restart the clock on a new 30-year refinance, consider a lower rate and pay off your mortgage faster with a 15-year loan. Refinancing your rate and term could lower your monthly mortgage payments..
What Is A Streamline Refinance?
If your existing mortgage is backed by the government, you may be entitled to refinance under a “streamline refinance” program. These cut both the time and the paperwork required, and often make it much easier to get approved because some ignore your employment status, the current market value of your home and your credit score and report. If you have a mortgage provided under any of the following government-backed programs, read on to discover the benefits offered by a streamline refinancing and to learn about some of the rules and restrictions that surround them:
FHA loans – Federal Housing Administration
VA loans – Veterans Administration
HARP refinances – Home Affordable Refinance Program
USDA Rural loans – United States Department of Agriculture – rural development
Please note that, just because the government (which guarantees the loans) sets eligibility rules, that doesn’t mean that every lender (which puts up the money) has to accept them. Lenders are entitled to impose their own eligibility criteria, and your existing one may be stricter than others. Don’t despair. Simply shop around for a lender that’s more comfortable with your personal circumstances.
How Much Can I Borrow From My Home?
Answer: On FHA primary residence, you can borrow up to 95% of your home’s value. Example: If Home Value is $550,000, you can borrow up to $522,500.
Answer: On Conventional Loan, you can borrow up to 85% of your primary residence. So if your home is valued at $550,000, you can borrow up to $467,500
We can also help you borrow on investment, rentals or commercial properties.
Further your financial goals and enhance your life with a cash-out refinance.
The Basics:
A Cash-Out Refinance Can Help You Meet Your Financial Goals
Use your home equity to your advantage! Get money out of your home and use it for anything you want. Find out if it makes sense to refinance with our refinance calculator.
Make home improvements to increase the value of your home, pay for college tuition, pay off high-interest credit card debt, or buy a vacation home.
Popular Cash-Out Refinance Options
FHA loan – Refinance up to 85% of your home’s value.
30-year fixed-rate loan – This traditional mortgage with fixed payments is great for budgeting.
Adjustable rate mortgage – Save thousands in interest with our lowest rates available!
VA loan – Refinance up to 90% of your home’s value with the VA loan if you’re a veteran, military member or spouse.
Reverse Mortgage – Homeowners over 62 years of age can access their home’s equity like cash with a reverse mortgage loan..
FHA-endorsed loans allow for a reduced down payment (as low as 3.5 %!!) which can help you purchase your dream home sooner. If you already have an FHA loan, an FHA streamline product is a quick and easy process, where we may not even need an appraisal!
For our wonderful veterans, a VA loan allows you to purchase a new home with 0% down, as well as an overall lower rate (compared to conventional loans). If you are a veteran, this is the ideal product for you.
These loans offer military veterans exceptional benefits, including low interest rates and no down payment requirement.
A Reverse Mortgage is a type of home loan for older homeowners that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner’s insurance. Reverse mortgages allow elders to access the home equity they have built up in their homes now and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower (or the borrower’s estate) is generally not required to repay any additional loan balance in excess of the value of the home.
To qualify for a reverse mortgage you must:
Be at least 62 years old
Own your home
Meet minimum credit and income requirements
Have equity in the house to pay off any outstanding balances
Your home must be your principal residence
What is a jumbo mortgage? A non-conforming jumbo mortgage can help you purchase a lot of real estate. This mortgage is needed for loan amounts over the conforming loan limit of $484,3500 and $726,525 in high-cost areas. If you need to take out a loan over the conforming limit, a fixed or adjustable rate jumbo mortgage could be your ticket to a big and beautiful home. There is, however, one key difference: Jumbo loans are ineligible for purchase by Fannie Mae or Freddie Mac and must be sold in the secondary market. What does this mean? Jumbo loans can require more stringent credit guidelines and larger down payments than conforming loans..