When you refinance to lower your interest rate, your monthly payment gets smaller, and you could also save thousands over the entire course of your loan.
If you don’t think you’ll be living in your current home forever, refinancing to extend the term of your loan will give you lower monthly payments. Just remember that if you do plan to live there for a long time, a longer loan term means you’ll pay more over the life of the loan.
If you have more than 20% equity in your home and have an FHA or other government-backed loan, you could lower your monthly payments by refinancing to a conventional loan, because no PMI is required.
Cashing in on your home equity allows you to consolidate all of your credit card and other high-interest debts into a simpler single monthly payment.
Usually, a home renovation project requires a lot of cash in a short amount of time, which usually means a home improvement loan. Using a cash-out refinance on renovation costs is a great alternative to a traditional home improvement loan, which tends to have higher interest rates and strict loan terms.
If you have kids heading to college, a cash-out refinance can be used toward their tuition and help save you (and your kids) from taking out high-interest student loans.
When you refinance to shorten the life of your loan, you reduce the overall amount of interest you end up paying. Over the term of the loan, this could end up saying you thousands — and you’ll pay off your home much sooner, too.
If you have more than 20% equity in your home and have an FHA or other government-backed loan, refinancing to a conventional mortgage may lower your monthly payment, as private mortgage insurance will no longer be required. You could then apply the difference to your loan’s principal balance, which means you’ll have it paid off sooner.
Qualifying members with a current FHA loan are able to refinance with FHA Streamline, which typically does not require a new appraisal or income verification. The paperwork is also much less extensive than with other refinance options.
A HARP refinance is designed for members with homes purchased before May 31, 2009, who owe as much as more than their homes are currently worth. HARP refinances require little paperwork and can be a great choice for members who do not have much equity in their homes but are looking to refinance to a more affordable mortgage.
IRRRL refinances are a great option for veterans, active military members, and qualified spouses with an existing VA home loan. The documentation is limited and no appraisal is required, and often the refinancing costs can be rolled right into the loan, eliminating the out-of-pocket costs to you.
By refinancing to lower your interest rate, you will not only reduce your monthly mortgage payment, but could save thousands of dollars over the life of your loan.
Refinancing to extend the term of your loan is a great option for borrowers who haven’t found their forever homes quite yet. This will reduce your monthly mortgage payment giving you the extra cash you need for life’s unexpected expenses.
If you have more than 20% equity in your home and currently have an FHA or other government backed mortgage program, refinancing to a conventional loan could lower your monthly payment, as mortgage insurance isn’t required.
If you have credit card or other high-interest debt you would like to roll into one, simple monthly payment, cashing in on your home equity could be a great option for you.
Renovating your home often means coming up with a lot of money in a short period of time. But, because traditional home improvement loans tend to have higher interest rates and strict loan terms, a cash-out refinance is a great alternative.
Kids leaving for college soon? Cash-out refinancing can help you cover the cost and avoid high-interest private loans.
When you refinance to shorten the term of your mortgage, you will pay less interest over the life of your loan. This could save you thousands and help you to pay off your home in much less time.
If you have more than 20% equity in your home and currently have an FHA or other government backed mortgage, refinancing to a conventional loan may lower your monthly payment as mortgage insurance is not required. The difference could then be put toward your principal, meaning you’ll pay off your mortgage in less time.
If you’re a current FHA borrower, an FHA Streamline refinance could be the right pick for you. They typically don’t require an appraisal and the paperwork is much less extensive than traditional refinance options.
If you owe as much or more on your mortgage than your home is worth, your home was purchased before May 31, 2009 and is currently owned by Fannie Mae or Freddie Mac—you may be eligible for the Home Affordable Refinance Program (HARP). With limited documentation required, it’s a great option for borrowers who have little or no equity in their homes but are looking to refinance into a more affordable mortgage.
If you’re a veteran, active service member or qualified spouse looking to refinance your current VA loan, an IRRRL is probably the program for you. There is no appraisal and very limited documentation required and, in most cases, the cost of refinancing can be rolled into the loan— meaning there is no out-of-pocket cost to you.