Refinancing your mortgage loan offers some significant benefits. Whether you need cash for a new project, are seeking to lower your payments or get a better interest rate, or need to shorten your loan term, there are options available. Better Rate Mortgage offers the following popular types of mortgage refinancing loans for clients looking to make changes in their home investment:
- Fixed-Rate Mortgage
- Adjustable-Rate Mortgage (ARM)
- Conforming Loans
- Jumbo & Super Jumbo Loans
- FHA, VA & USDA Loans
These different types of mortgage loans can be used in various ways for refinancing. One of our loan refinancing experts at Better Rate Mortgage can explain how each type of loan works, and how it can help you with refinancing. Your circumstances are unique, and you deserve a tailored refinancing solution that fits your needs. We can help you choose the best refinancing loan and get you the best interest rate available.
Here is more about the most popular types of refinancing loans and the reasons for refinancing.
Cash-Out Refinance Loan
A cash-out refinance loan allows you to refinance your existing mortgage loan and actually borrow more than you owe. The extra money can be used on various other projects, such as education expenses, home remodeling or additions, vacations, or other investments. The new, larger loan replaces your current loan, and comes with a new payment and potentially, a new interest rate.
Rate and Term Refinance Loan
A rate and term refinance loan allows you to refinance your existing mortgage loan in order to gain a different interest rate and more favorable terms. You are refinancing the amount remaining on your original loan, but if interest rates have changed, you can lock in a more favorable rate and an even shorter term.
For example, your original mortgage was for 30 years at 8% interest. After paying on the loan for 5 years, you choose to refinance. At this time, the current interest rate is only 6%. You are now able to refinance the remaining balance of your loan at the new interest rate and your term is now shorter, only 18 years.
This type of refinancing scenario is just an example, but you see how refinancing in this instance allows you to pay less in interest and reduce the amount of time you must pay on the loan.
FHA Streamline Refinance Loan
An FHA Streamline Refinancing loan allows those with current mortgage loans through GHA to lower their monthly payment amount and sometimes get a better interest rate. This is a program offered by FHA for current clients. The loan can be based on your current credit score or on other factors; you choose the route to take for refinancing.
There are other elements to this program that you must meet, and the interest rates can often be better now than when you first obtained your FHA mortgage. One of our loan experts at Better Rate Mortgage can explain more when you call.
VA Streamline Refinance Loan
A VA Streamline Refinancing loan is available to veterans and active service members who currently have a VA mortgage loan. It allows you to lower your monthly payments, get a better interest rate, and obtain a lower VA funding fee. You can also change the type of loan you have, from an adjustable rate mortgage to a fixed-rate mortgage.
There are a few qualifying factors to consider, but qualifying is relatively easy. A loan expert from Better Rate Mortgage can explain more when you call.
USDA Streamline Refinance Loan
The USDA offers two types of Streamline Refinancing loans, based on your credit score, DTI ratio, length of your current loan, and if the mortgaged property is your primary residence. With a USDA streamline refinancing loan, you can lower your interest rate and get different loan terms, even if you have little equity in the home. You can also avoid appraisals or inspections while still qualifying for a loan.
Call today and speak with a loan expert from Better Rate Mortgage to get more information and see if you qualify for one of these two types of loans.
Refinancing with Better Rate Mortgage
Refinancing with Better Rate Mortgage is a great way to save money and get better terms on your existing mortgage loan, even if you used another lender. We can answer any questions and pre-qualify you for a mortgage refinance loan in no time! Here’s how it works:
- Complete our simple home refinance analysis request
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Choose the offer that best fits your needs
Why not get started today?
