What are the different types of Refinancing Loans?
If you’ve decided to refinance a home loan, let us help you figure out which type of mortgage loan is right for you.
The first step in determining the worth of a conventional mortgage refinance is to estimate the property value and the borrowers’ equity in the home. Unless the homeowners have more than 20 percent equity in the property, they will have to pay private mortgage insurance, which will add to their monthly costs. An appraisal also will be required.
FHA Streamline refinances enable Port St. Lucie homeowners to refinance their current FHA home loans with reduced paperwork and underwriting to take advantage of lower interest rates so that borrowers can save more money, lower their monthly housing payments and in some cases change from an adjustable rate mortgage to a fixed rate mortgage loan or even shorten the term of their loans.
Through the VA Loan, eligible veterans, service members and surviving spouses of service membershave access to special refinancing options designed to lower monthly mortgage costs or provide the ability take cash out of a home’s equity.
If you’ve received a United States Department of Agriculture (USDA) loan in the past, you know how beneficial this program can be for low to medium income home buyers. By providing 100% financing, construction loans, and not requiring private mortgage insurance, the USDA is able to open the housing market up to buyers who would not otherwise qualify. Even better news for current Section 502 Direct and Guaranteed borrowers looking to lower their rate, the USDA offers a favorable streamline refinancing option known as the USDA Rural Refinance Pilot program.
A reverse mortgage is similar to a home equity loan in that it allows you to borrow against the money you have already paid toward it. The difference is that you don’t have to pay it back until you move out, sell the home, or die. That means that you get the benefits of a home equity loan without the burden of making more payments.
Please give us a call with any questions.
More Information about Mortgage Refinancing