Want to know one way we make it enjoyable? We keep it simple, with a small number of steps to get you from here to closing day. Get a look into how we do it with this short video, “Home Refinance Loan Process.”
There are plenty of reasons for refinancing a home.
Need a new deck out back? How about that bathroom? The one you’ve been talking about putting in the basement… for years? You’ve invested in your house, and now that investment can work for you. Refinance and use that cash.
You’d be surprised how big a difference refinancing could make. A percentage or a point could make all the difference in getting closer to something you’ve been saving or planning for. Or, maybe, you just want to pay less. And who doesn’t want that?*
Maybe you’d like to pay your mortgage off sooner (and have that money for something else later). Not only can refinancing get you out of your loan faster, but it can help you pay less interest. This really is a case where less is more!
*Total finance charges may be higher over the life of the loan.
This is the usual starting point for many, because it’s exactly what it sounds like: conventional. A Conventional Loan is pretty standard and requires a minimum down payment of 5%, for a maximum loan amount of $726,200. In addition:
For a USDA Home Loan, a new or existing property must be located in a USDA-approved area. While there may possibly be financed closing costs, there is no down payment required (100% – 102% LTV financing based on appraised value.) These also feature reduced monthly mortgage insurance premiums. In addition:
With no income limits, FHA Loans require a 3.5% minimum down payment and a maximum loan amount of $472,030. For condominiums, they must be on FHA-approved list. Also, an upfront Mortgage Insurance premium is financed into the loan. In addition:
Specifically for Veterans, VA Loans require no down payment (loan applicants must meet VA eligibility, however.) The maximum loan amount is $726,200, with no mortgage insurance. The VA funding fee can be financed into the loan (which can be waived by disabled veterans.)
Just like any other type of mortgage, though the applicant must be 62 years or older, own the property, and occupy it as their primary residence. One nice bonus? You don’t have to make a payment until the last surviving homeowner permanently moves out of the property or passes away. At that point, any remaining equity will be inherited by the estate.
For homes exceeding the value of Conventional Loans as established by the FHFA (the current conforming loan limit for one-unit homes in most counties nationwide is $726,200). Predominantly used to finance homes in highly competitive real estate markets or luxury homes, Jumbo Loans are usually available with a fixed interest rate or an adjustable rate.
Designed to provide the needed funds to update or renovate your home, Renovation Loans should be viewed as a means to reduce your long-term costs, increase the value of your property, or for buying a home that is at a lower price point or “fixer-upper.”
Also known as self-employed mortgage, a Bank Statement Program is a great option for those borrowers who do not have the tax documents to prove their ability to pay for a mortgage. Can be applied to owner-occupied, 2nd homes or investment properties, with loans up to $4 million.
Loans are higher interest rate, shorter term (usually for a period of one year) loans to cover the cost of constructing or rehabbing a house. These loans are paid to a contractor, rather than the borrower, and as construction targets are completed. Upon completion of construction, the borrower has the option to either refinance or obtain a new loan.
A conventional investment in real estate bought with the intent of generating income, usually in the form of a one- to four-unit residential home, Investment Property Programs tend to have a higher mortgage, with more adherent lending standards, as well as higher down payments, than your standard property loan.
It may be hard to believe, but in just a few clicks, a new home or mortgage savings could be yours. Whether you’re looking for a rate that works for you or searching for your local branch, there’s no commitment. Get started today!
You don’t want a more expensive rate, or even an okay rate. No, you want the best rate, the one that works for you. So that’s what we’re focused on. Purchasing a home is a large investment – it’s kind of a big deal, financially and emotionally. So, we want you to lean on us as we find the rate that works and make that purchase a reality.
