Refinancing your home loan can be a great way to save money on your monthly mortgage payments or to pay off your home loan faster.
- Rate and term refinance
A rate and term refinance is a type of refinancing that allows you to change the interest rate or the term of your existing mortgage. This type of refinancing does not allow you to cash out any equity in your home. A rate and term refinance is a good option if you want to lower your monthly mortgage payments, pay off your mortgage faster, or switch from an adjustable-rate mortgage to a fixed-rate mortgage.
- Cash-out refinance
A cash-out refinance is a type of refinancing that allows you to borrow more money than you currently owe on your mortgage and receive the difference in cash. This type of refinancing can be used to pay for home improvements, consolidate debt, or cover other expenses. However, a cash-out refinance typically comes with a higher interest rate and may extend the length of your mortgage.
- Streamline refinance
A streamline refinance is a type of refinancing that allows you to refinance your existing mortgage with minimal documentation and underwriting. This type of refinancing is only available for certain types of mortgages, such as FHA or VA loans, and typically does not require an appraisal. A streamline refinance is a good option if you want to lower your monthly mortgage payments or switch to a fixed-rate mortgage without the hassle of a traditional refinance.
- FHA refinance
An FHA refinance is a type of refinancing that is backed by the Federal Housing Administration (FHA). This type of refinancing is only available for FHA loans and typically comes with more lenient credit requirements and lower down payment requirements than conventional loans. An FHA refinance is a good option if you have a low credit score or don’t have enough money for a large down payment.
- VA refinance
A VA refinance is a type of refinancing that is available to veterans and active-duty military personnel with a VA loan. This type of refinancing allows you to lower your monthly mortgage payments, switch from an adjustable-rate mortgage to a fixed-rate mortgage, or cash-out your home equity. A VA refinance typically comes with lower interest rates and fewer fees than other types of refinancing.
