Refinance Mortgage Options
Whether it be VA, FHA, USDA, Conventional, or a reverse mortgage we can help you with your refinance. Learn more about each loan program below.Refinancing Your Mortgage Can Save You Big Time.
Refinance mortgage options are empowering tools! If your goal is to just reduce your rate, get cash out, or eliminate mortgage insurance we can help! With the recent appreciation in home values over the past decade homeowners have a lot of trapped equity. If that’s you it can make a lot of sense to pay off that car, truck, RV, massive credit debt, or fund college for your kids! If you are currently paying mortgage insurance or private mortgage insurance you could potentially save hundreds a month just by eliminating that! Additionally if you want to keep your first mortgage you could access your homes value with a home equity line of credit.
Conventional Refinance
Let us see if we can lower your rate or convert your FHA mortgage into a conventional mortgage and eliminate the FHA mortgage insurance. Most current FHA mortgages have a .50% mortgage insurance rate, on a $400,000 loan that’s $2,200 a year in savings. You can also get cash out with a conventional refinance.
USDA Refinance Mortgage
The USDA has an excellent refinance program that allows borrowers to reduce their rate and finance all of their closing costs! That’s without requiring an appraisal, and without credit score requirements. You need only to have paid your mortgage on time for the last 12 months and still be under the USDA income limit.
Reverse Mortgages
The reverse mortgage refinance or the reverse mortgage for purchase is a great option for seniors over 62! They are growing in popularity every year. You can pay off an existing mortgage or home equity line of credit with a reverse mortgage. Or you can refinance your existing reverse mortgage into a lower rate!
FHA Refinance Mortgage
The FHA has a streamline refinance program that allows you to get a credit for the funding fee you already paid. These programs are popular and we are glad to help with them! Keep in mind though! Values have been increasing, it could be a better option to wait until you get to 80% loan to value and eliminate mortgage insurance with conventional financing.
VA Refinance Mortgage
Need cash out of your home? VA financing is a great way to do it. They also have a great program we call IRRRL’s, it stands for interest rate reduction refinance loan. Keep in mind, for veterans we do not charge an underwriting fee or a processing fee, so we can keep your closing costs that much lower with our Hamilton for Heroes Program!
Refinance Manufactured Home
If you have a manufactured home and you want to lower your interest rate or get cash out we have a lot of options for you. A lot of times when setting up your home the dealers get you into high interest loans and we love to help people save money in those situations.
What Type of Mortgage Refinance Options are There?
There a few terms you should be familiar with when deciding to do a mortgage refinance.
Rate/Term Refinancing- a rate and or term mortgage refinance allows you to change the rate and or term of your mortgage. So if you currently have a 30 year mortgage and you want a 15 year mortgage that would be a term change. If you currently have a 4.5% interest rate and are lowering your rate to 3.5% that would be a rate change. You cold however be changing your rate and term at the same time, this is a rate/term refinance.
Limited Cash-Out Refinance- a limited cash out refinance allows you to no only change your rate and or term but it also allows you to finance your closing costs. You can get a small percentage of the loan amount as cash in your hand after closing but this is why its called a limited cash out refinance. You are limited to paying off your current mortgage and financing your closing costs.
Cash Out Refinance- This program allows you to pay off your current mortgage if you have one, finance closing costs, and get cash in your pocket at closing. This would also be considered a debt consolidation mortgage if you are paying off credit cards, vehicles, and or any other debt at closing. Your rate or cost for rate can be higher when utilizing a cash out refinance but the benefits of eliminating suffocating monthly debt can well exceed the cost.
Program Notations- With FHA you can get cash out up to 80% of the value of your home. With conventional financing you can get up to 80% of the value out of your home. If you own a manufactured home and want cash out you will be limited to 65% of the value of your home. USDA mortgage refinance programs do not allow you to get cash out. VA financing allows you to get up to 100% of the value from your home, or in some cases 90%.
