Mortgage Refinance Loans
Your house is a major monetary investment. Capitalize on this investment with a refinance loan, which can help you tap into your home’s equity to accomplish other goals, consolidate other debt, or decrease your existing home loan’s interest rate.
Loan agreement paperwork for mortgage refinance
Conventional Loan
A conventional refinance home loan stands out for its lower closing costs and interest rates. You can find this loan option through a private lender versus the government. Your home must have 5% equity or more based on its appraised value to qualify for refinancing. In addition, be prepared to pay private mortgage insurance (PMI) premiums if the mortgage refinance loan’s loan-to-value (LTV, or mortgage amount compared with property value) is more than 80%. A lender will also consider your income source (based on debt, asset, and income documentation) and credit score before approving you for the loan.
A major reason to go with a conventional refinance loan is its lower interest rate compared with other home refinance options. You also have the flexibility of choosing an adjustable or fixed interest rate.
FHA Loans
The FHA provides a couple of options for refinancing your existing FHA home mortgage: streamline and cash-out mortgage refinance loans. The streamline option is a simple and fast way to decrease your monthly payments, while the cash-out route will allow for borrowing against your home’s equity. Both choices can be excellent ways to capitalize on a lower market interest rate to save money over the course of your loan. You also don’t have to submit as large of a down payment as you would with a conventional refinance loan.
VA Loans
Mortgage refinance loans through the Department of VA are available to veterans, active service personnel, and the surviving spouses of armed forces members. These loans can help you lower your interest rate, improve your existing loan’s terms, or use the equity in your home.
Two VA mortgage refinance loans are available: a cash-out option and one that reduces your interest rate. The former will let you access your equity to renovate your home or pay off debt, while the latter will let you replace an adjustable interest rate with a fixed one or lower your current interest rate. No down payment or PMI is required, and the credit requirements are relatively lax. You can also use a VA refinance loan to refinance either a non-VA or VA loan. Be prepared to meet income and credit requirements and produce an eligibility certificate to qualify for this loan option. Your home must also be your primary residence.
USDA Loans
Do you live in a suburban or rural area and wish to refinance your home? Consider a USDA refinance loan. It will allow you to decrease your home mortgage’s interest rate and is friendly toward people who’ve previously struggled with poor credit. You must meet income requirements to qualify.
Jumbo Loans
These mortgage refinance loans are ideal for a homeowner seeking to refinance a loan for a costly property to generate monthly savings or utilize their equity. They offer multiple benefits, including competitive terms (30, 20, or 15 years) and interest rates (adjustable or fixed). A lower monthly payment can be achieved with a longer loan term. In addition, an adjustable rate is typically lower than its fixed counterpart, ultimately saving you money. However, the adjustable rate is best for a homeowner who doesn’t plan to have the home loan long since it can change over time.
Partner with Summit Lending Today
At Summit Lending, we’re your leading mortgage broker firm with more than five decades of combined industry experience and multiple home purchase and refinance options. Begin saving money with mortgage refinance loans by contacting us today!
Summit Lending isn’t affiliated with the USDA, VA, FHA, or the U.S. government. Also, note that refinancing won’t eliminate your existing debt. Instead, it will consolidate it into a brand-new loan, and your finance charges may increase overall.
