A mortgage refinance is one of the smartest financial moves that a person can make. Redefining the terms of your loan—to benefit payoff schedule, or cash on hand, or to lower the interest rate—is an efficient method to accrue wealth, provided certain conditions are met...
As we articulate in the articles below, each mortgage product has certain benefits and specific requirements. If you meet any of the following criteria, you likely quality for refinancing.
Refinancing a mortgage means replacing an existing loan with a new one. The terms of the refinance will be different from the original loan. Most often, a refinance is used to secure a lower interest rate, shorten the loan term, or convert to a fixed-rate mortgage, but those are just the main reasons. Additionally, people sometimes use the refinance process to consolidate debt or fund a home renovation.
There are several refinance products, including cash-out options, shortened loan terms, and refinancing for VA and FHA home loans.
You’ll want to do a lot of research to make sure you are seeking the optimal refinance option. The resources below were created to help you understand what products are out there and help guide you toward the best one. If you’d rather get help from a specialist, just fill in your details in the panel on the right.
Since the original loan expired, HARP program replacements have been created to help homeowners refinance with little or no equity. They're available to help lower your monthly payment -- and in some cases -- your interest rate.
A cash-out mortgage is designed to help homeowners access the equity in their property. It requires homeowners to borrow more funds than what they owe on a home.
Investment properties have their own regulations when it comes to mortgage applications. If you want to cash-out refi to buy a second home, here's what to know.
The FHA cash-out refinance provides homeowners with access to their existing home equity. This refinance is the only FHA option that provides cash back.
The timing of when you consider VA cash-out refinance rates will be unique to your needs and financial circumstances. Still, here's how current rates stack up.
The maximum second home cash-out refinance LTV requirement may vary by lender, but it's almost always 75%. There isn't usually a minimum cash-out refinance LTV.
Yes, you can use a cash-out refinance to buy a second home. A cash-out refinance can provide you with a large lump sum to be used for whatever you want.
Yes, you can cash-out refinance a second home. Your lender may have different requirements, but you can refinance a second home like you would a primary residence.
Yes, you can cash-out second mortgage loans. Common second mortgages that allow access to home equity include HELOCs, home equity loans, and piggyback mortgages.
An FHA streamline cash-out refinance can result in a lower mortgage payment. You won't need an appraisal, and you'll provide less documentation.
The max cash back on FHA rate and term refinance can be up to $500. Homeowners applying for this refinance may also see lenders refer to it as a “no cash-out” refi.
Mortgage rates are constantly fluctuating, but today's 30-year cash-out mortgage rates are slightly higher than in previous periods.
Choosing to HELOC for a down payment on second home properties can make sense if you’re financially prepared to invest in a new house.
HELOC interest is deductible on taxes when the funds are used to improve upon or expand the property. Homeowners must also itemize their deductions.
Yes, you can take out a HELOC on second homes. In these cases, homeowners may be subject to a higher interest rate on second-home HELOCs.
If you're using a HELOC to buy another house, know that you're putting your first home up as collateral. Still, this can be a smart option for some homeowners.
HELOC closing costs comprise between 2% and 5% of the total loan amount. Those costs are a percentage of HELOC, not the principal. HELOC closing costs are typically less expensive than cash-out refinancing.
If you HELOC on an investment property, you won't be able to write off interest payments unless the funds go toward improving that property.
Not all lenders offer fixed-rate HELOCs, but this can be an excellent way to access your home's equity with a more stable repayment plan.
An interest-only HELOC is only requires interest payments during the draw period. Once the draw ends, you'll need to pay back both principal and interest.
The IRS outlines specific guidelines for when HELOC interest is tax-deductible. Homeowners can usually deduct when they use the loan to make home improvements.
The minimum credit score for HELOC is 620, but there may be variations from lender to lender.
Homeowners can refinance HELOCs into mortgage payments in a few ways: convert it to a home equity loan, take out a new HELOC, or opt for a cash-out refinance.
Not all mortgage lenders are created equal. Look for these red and green flags when researching the best cash-out refinance lenders available.
Cash-out refinance closing costs can equal 2-6% of the loan's value. Some closing costs, like the application, origination, and underwriting, are negotiable.
Homeowners with substantial equity built up can use a cash-out refinance to buy a second home. These funds can go toward the down payment and closing costs.
Qualifying for an FHA cash-out refinance is very similar to qualifying for your original FHA mortgage. You need at least 20% equity in the home to qualify.
The Department of Veteran Affairs allows for VA loan cash-out refinancing. Qualified veterans have access to up to 100% of their home's current appraised value.
Using a HELOC for debt consolidation can help borrowers reduce interest and pay off debts faster. Just remember to compare interest rates for existing loans.
Leveraging equity on a first home can be a great way to fund a second home purchase. But, when you HELOC for down payment needs, spend strategically.
Choosing a HELOC for home improvement funding can result in a great return on investment. Using a line of credit can help homeowners cover recurring costs.
Using a HELOC for self-employed reasons can be a smart idea. However, self-employed borrowers are subject to a different set of loan qualifications.
If you have an upcoming project or expense, you may consider a HELOC for financial agility and support. A home equity line of credit is a great strategy for homeowners to access cash based on the value of their home. From new down payments and debt consolidation to home repairs and renovations, HELOCs have unlimited applications.
Getting a cash-out refinance VA loan is a great opportunity for veterans to improve their homes and accumulate wealth. Check to see if you qualify today.
The optimal debt-to-income ratio for HELOC eligibility is around 36%, but each case is unique. Check to see if you qualify for a HELOC today.
The FHA Streamline refi is a great opportunity for qualified homeowners to lock in more favorable loan terms. Access a fast closing and an easier experience.
If you're looking for a no-fee HELOC, you should understand the terms that come with your line of credit. There are several ways a HELOC can help manage debt.
Consider a 5-year ARM refinance before the initial period expires. Choose between another ARM, a fixed-rate mortgage, and a cash-out refinance.
Homeowners considering a 15-year fixed refi know to look for low interest rates. But you should also check closing costs, cycle time, rate locks, and more.
15-year fixed refinance rates are poised to increase in the coming years. If you haven't taken advantage of low rates, you can still benefit from a refinance.
30-year ARM mortgage rates are often lower than fixed-rate loans with similar term lengths. Savvy borrowers can use this to their advantage during a refinance.
Many lenders advertise the "lowest 15-year refinance rate." This type of advertisement encourages applicants to refinance before they are ready to do so.
Homeowners with adjustable-rate mortgages can refinance 7-year ARMs into a new loan. Choose between another ARM, a fixed-rate option, and a cash-out refinance.
There are several popular experience that cause homeowners to refinance adjustable-rate mortgages: the introductory period ends, you're moving, or rates drop.
Choosing to refinance ARM loans is a big decision. You may be ready if you want a fixed rate, to shorten your term, or if your financial health has improved.
If you're approaching the adjustable-rate portion of your ARM, it might be time for a refinance. 10-year ARM refinance options can save thousands of dollars.
Adjustable-rate mortgages are popular for a reason: they provide access to lower interest rates. But when should you refinance a 30-year ARM into a fixed term?
Cash-out refinancing is possible with adjustable-rate mortgages. You may be able to refinance into a fixed-rate loan, or you could take out another ARM.
Choose to refinance your ARM to fixed-rate terms? You'll want to refinance strategically, settle on a loan term, gather your paperwork, and expect an appraisal.
Looking to refinance FHA ARM loan? Choose between another ARM and a fixed-rate mortgage with expedited refinancing through Streamline and Simple refinancing.
Homeowners who want to refinance from ARM to fixed-rate mortgage terms should expect to have a good credit score, substantial home equity, and limited debts.
Thinking about a refinance from fixed to ARM terms? This can help if you plan to move, pay off the home, increase income, or refinance again in the near future.
FHA 15-year refinance rates are very favorable for qualified homeowners. Here’s what to expect when the Federal Housing Administration backs your refinance.
Adjusting the structure of your mortgage can significantly impact your finances. Choosing to refinance a HELOC could help you save money and consolidate debt.
Homeowners have the option to refinance their mortgage with a HELOC. This can help consolidate debt, improve interest rates, and lower monthly payments.
Refinancing from 30- to 15-year mortgage terms is a great financial strategy. But when does it make sense to simply make extra payments on a 30-year mortgage?
Refinancing from 30-year to 15-year mortgage terms isn't always an easy choice. Here are some common myths and how to make the best decision for yourself.
Refinancing a mortgage from 30-year to 15-year terms is among the best financial moves to make before retiring. Pay down debts and eliminate recurring costs.
Getting a 15-year fixed refinance with no closing costs doesn't alleviate those fees. They are moved to other parts of the loan, like the principal or rate.
Researching 15-year refinance APR options? Consider interest rates. APR reflects all borrowing fees, but interest rates change based on personal qualifications.
The best 15-year refi isn’t always the most obvious. The choice should depend on financial goals – building equity, reducing interest, or lowering payments.
Getting a cash-out refinance with 15-year terms can help homeowners tap into their accumulated equity. But should you ever choose a longer-term cash-out refi?
Closing costs of a 15-year refinance include the application, credit check, and title. Some homeowners forego these costs in exchange for higher interest rates.
A 15-year cash-out refinance can guarantee access to up to 75% of a person’s home equity. But how much will your payments increase if with this type of refi?
Homeowners in a tough spot can use a cash-out refinance to pay off HELOC debt. There are no lender restrictions on how you use cash-out refinance funds.
Using a HELOC after refinancing can help homeowners access emergency funds, finance home renovations, and recoup savings after paying closing costs.
You can pay off HELOC debt with a refinance. Homeowners have the option to roll their HELOC into their current mortgage.
Homeowners can refinance and HELOC at the same time if they want to refinance while taking cash out of their home. This is different from a cash-out refinance.
In choosing to refinance to a 15-year fixed-rate mortgage, you can lock in reliable monthly payments and secure a lower interest rate.
Choosing to refi from 30- to 15-year mortgage terms can help homeowners own property outright and save on interest. Do you have the means to make this move?
When you refi to a 15-year fixed mortgage, you build equity and reduce interest payments. Here's what to expect when you make the financial move.
When you refinance at 15 years, you pay your loan faster and save money in interest. Choose from 15-year fixed-rate loans, cash-out options, and shorter terms.
Choosing to refinance with 15-year mortgage terms means securing a lower interest rate, paying more into your home equity, and owning the house outright faster.
Qualifying veterans can secure a VA refinance 15-year fixed loan regardless of their original mortgage. Read about core benefits for this loan option.
Choosing to refinance to 15-year loan terms can open doors for your financial future, but it also comes with an up-front cost. Is it time for you to refinance?
Looking to refinance a mortgage from 30 to 15 years? It can be tough to know when is best to make the financial move. Consider these factors when deciding.
If you currently have an adjustable-rate mortgage, it may be time for a refinance. Act now to secure a low rate on a refinance home loan 15-year fixed interest.
An FHA Streamline refinance 15-year fixed mortgage simplifies the job of a borrower. You won't need an appraisal, certain documentation, and/or a credit check.
Rather than waiting around to secure the lowest 15-year refi, refinance as soon as you’re ready. Rates are impossible to predict, so move at your own pace.
A no closing cost refinance on a 15-year mortgage can alleviate up-front costs of a refinance. American Financing can help you decide on this option.
A 15-year fixed jumbo refinance can get you into a conventional loan, lower interest payments, and help accumulate equity. This may be a great option for you.
When you choose a 15-year refinance with no closing costs, those fees are rolled into your mortgage. Here’s how to know if that’s a good idea for your loan.
Interested in a 15-year VA refinance? These attractive loan options promise low interest rates and few associated costs. Here’s how to start the process.
Those with mortgages who want to refinance from 15 to 10 years are motivated to pay off their homes, when to make the move is a very personal decision.
If you’re looking for a way to reduce monthly expenses, choosing to refinance from 15- year to 30-year mortgage terms can put more money back into your budget.
Refinancing from 15- to 30-year loan options can take the pressure off your monthly budget. Consider this move if you’ve had changes in financial security.
Refinancing from a 30- to 15-year mortgage could be a smart move for homeowners about to retire. Own your home outright faster and eliminate mortgage payments.
Refinancing home loans to 15-year terms isn’t for everyone. But, for those ready to make the move, the financial benefits are substantial.
A no-cost 15-year refinance helps borrowers secure their dream homes. Here, the lender pays the borrower's closing costs in exchange for a higher interest rate.
Though you should consider the cost to refinance to 15-year mortgage options, the benefits of a lower interest rate and shorter loan term outweigh the costs.
If you’re a homeowner, opting for a 30-year to 15-year refinance can save thousands of dollars. Use a calculator to understand your savings.
A 15-year refinance can save thousands of dollars, but you should prepare to pay 15-year refinance closing costs. Here’s what to expect.
Reducing your mortgage term with a 15-year fixed-rate mortgage has many benefits. You’ll want to ensure you’re getting a great rate when you refinance.
A 15-year cash-out refi is a smart way to fund a home improvement project: efficiency upgrades, kitchen remodeling, infrastructure updates and more.
15-year FHA streamline refinance rates can be a lucrative real estate investment with a high return on investment. Today's rates offer borrowers more options.
Getting prequalified for a 15-year fixed-rate refinance today will provide the definitive information you need to make a well-informed decision.
If you purchased an expensive home in recent years, it might be time for a 15-year jumbo refi. Access lower rates and better terms.
The best refinance rate for 15-year mortgage options will change over time. Don't wait for rates to decrease in the coming weeks or months.
A 15-year VA cash-out refinance can help veterans build wealth. Use cash-out funds to finance a home improvement project and grow your property's value.
With a fixed-rate 15-year refinance, you can shorten the length of time it takes to own your home. Secure a lower interest rate and adjust monthly expenses.
Are you looking to refinance from 30- to 15-year mortgages? Then it's critical to understand whether you're a good candidate for a shorter term and what to expect during the loan process.
A jumbo refinance can help you lower your rate, shorten your term, or improve your home. The process only requires a few steps, and qualification is straightforward when you work with the right lender. Learn more in this article.
You might be tempted to use a credit card or savings account to pay for a home improvement. However, you have other options, including using the funds from a cash-out refinance. Learn the ins and outs of refinancing for home improvements.
There are different kinds of closing costs that come with a home sale. Whether paying them upfront or over the life of your loan, there's a lot to consider before making that decision.
Are you looking for ways to access your equity as a homeowner? Then you'll definitely want to look into a cash-out refinance or home equity line of credit (HELOC). Keep reading as we discuss both loan options.
If your mortgage is currently in forbearance due to COVID-19, you might be wondering when you can refinance and take advantage of today's low rates. Learn which requirements you will need to meet and whether refinancing after forbearance is a viable option for you.
Homeowners looking to refinance must now account for an "adverse market fee" put in place by Fannie Mae and Freddie Mac. Keep reading to learn more about the charge and why you should still consider a mortgage refinance.
With mortgage rates at record lows, millions of homeowners would benefit from a refinance. Here are a few things to keep in mind before starting your application.
Refinancing into a 15-year mortgage could potentially save you hundreds of thousands of dollars. But is it the right financial move for you? Here's what you need to know.
Refinancing your mortgage can help you consolidate high-interest debt and shorten your loan term. What's more, you may also be able to skip or postpone two mortgage payments when you refinance. Here's what you should know before closing.
A mortgage refinance can help you save money by lowering your rate, getting rid of mortgage insurance, and/or shortening your term. But how many times are you able to refinance your home? Learn about the limitations and whether a refinance makes sense for you.
You can save some good money with a mortgage refinance. So don't let these common myths hold you back. You won't want to miss myth #3.
If you want to eliminate private mortgage insurance, tap into home equity, restructure the length of your loan term, or switch between fixed and adjustable-rate loans — a mortgage refinance is worth considering. Take a look at some common scenarios, and see which home refinancing option is your best fit.
The Home Energy Renovation Opportunity (HERO) program helps homeowners finance energy and water efficient home upgrades. But what's the catch? Find out the good, the bad, and the ugly when it comes to HERO loans.
Homeowners look to cash-out refinancing to turn some of their home equity into cash. It works by refinancing your mortgage at a higher amount. The new loan pays off your old loan, and that extra money (from refinancing at a higher amount) is distributed as cash to be used however you'd like.
An FHA streamline refinance is considered as one of the quickest and easiest loan programs out there. Borrowers aren’t required to verify income and assets. Learn how this program works and how to become eligible!
The VA Streamline (IRRRL) offers monthly and long-term benefits for veterans. So if your goal is to remain in your current home with a lower monthly mortgage payment or a shorter loan term, it’s time to consider a VA IRRRL. Know the requirements, and learn if this is the right option for your mortgage.
Close to retirement? Curious if there are any last-minute strategies that can help you save more money? Start by evaluating your debt. If you're a homeowner, you may find value in one of the many benefits of a mortgage refinance. Here's what you need to know.
Closing costs to refinance a mortgage can vary by lender, loan program, and even third-parties you work with. So, it’s important to know which refinance fees you have control over. In this article, we break down what you can expect, including tips on fees that can be avoided.
Homeowners should seriously consider recasting or refinancing their homes. Why? They can end up with lower mortgage payments and interest cost savings if they play their cards right. Learn the pros and cons of each option.
Did you know you could save thousands in the long run by simply paying off your mortgage faster? Pay off your mortgage faster with our easy to follow guide and create a brighter financial future for your family.
You’ve made the decision to refinance your mortgage. Maybe to lower your interest rate, to consolidate debt, or to get cash back. You may have even selected a shorter term. To be sure those savings start as soon as possible, it's important you know what to expect — so you can be prepared to close...fast!
Refinancing to consolidate debt is an attractive option for a variety of reasons. It makes debt payments more affordable, and often times can help with building your credit.
There’s a lot of talk about property values on the rise, resulting in high levels of home equity. Because of this boom, many homeowners continue to look to programs like home equity loans and lines of credit. If you’re interested in taking advantage of the equity in your home but are unsure how to get started, take a look at these options.
Refinancing your home loan can be very beneficial for a lot of homeowners. You may want to lower your mortgage interest rate, or access cash for college tuition, home repairs, vacations, debt consolidation, etc. Another reason could be to shorten your loan term, from a 30-year fixed rate mortgage to a 15-year fixed rate mortgage. No matter your primary reason, the refinancing process is generally pretty simple, but understanding all of your options can get tricky. Before you apply, know this...
Many homeowners refinance to lower their monthly mortgage payments, which is just one of the many benefits of a home loan refinance. Learn what programs are available and how to get started.
Mortgage refinancing can be simple and quick if you’re prepared to refinance your existing loan before rates rise again. It may be a good idea to take advantage of today's historically low mortgage rates. Here's why...