Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
Need help refinancing your home? I'll be with you every step of the way. Let's get started.
Refinance
Refinance
Need help refinancing a home? I'll be with you every step of the way. Let's get started.
What is a Refinance?
A mortgage refinance is when a homeowner pays off their existing mortgage and replaces it with a new one. There are a number of reasons that homeowners might choose to refinance. There can be a variety of advantages to refinancing that you can uncover. Several are listed below. In addition, check out some of the different types of refinances that exist in the market today.
Benefits of Refinancing:
Lower Monthly Payment
One of the biggest benefits of refinancing is for a borrower to lower their monthly payment. This benefit can be achieved through use of a lower rate fixed or adjustable mortgage or extending the term on a new loan. A lower payment can make managing your finances much easier.
Lower Interest Rate
When rates decline it can be a good decision to refinance. A common rule of thumb is if rates are 2% below your current note rate refinance is worthwhile. However, a full analysis on different options with your loan consultant is the best strategy.
Debt Consolidation
Refinancing can allow you to include other debts such as credit cards, auto loans, student loans or medical expenses to be rolled into one monthly obligation. Debt consolidation can not only organize your bills and give you one payment, it can also include additional tax benefits.
Payoff Home Early
A refinance can give you the opportunity to reduce the term left on your mortgage. Not only 15, 20 or 30 year terms exist, you can make your mortgage for any term you like in 1 year increments from 8 – 30 years.
Remove Ex-Spouse from Mortgage
Unfortunately, marriages sometimes end. But with a divorce or separation you’re still on the original mortgage with your ex-spouse. Refinancing is the only way to get a new loan in only your name or theirs and start fresh.
Cash Out for Home Improvements
Through home appreciation comes extra equity and wealth being built up in your home. A refinance can be a great way to access this equity and use it for home repairs and renovations that will add even more value to your investment.
Remove LPMI and MIP
If your mortgage has lender paid mortgage insurance (LPMI) included in the rate or an FHA loan that you put less than 10% down on, you’ll be paying mortgage insurance for the entire term of your loan. Refinancing can remove this cost if you meet meet certain criteria.
Switch from Adjustable to Fixed Interest Rate
Adjustable Rate Mortgages (ARMs) only offer a reduced rate for a certain period of time. After that initial term ends you might see a sharp rise in your interest rate depending on market conditions. To help avoid this, refinancing can offer a savings solution.
Some of the refinance options I can help you achieve are:
Rate-and-Term Refinance
A Rate-and-Term Refinance typically results in a new mortgage with a lower interest rate, reduced payment, shorter term, new loan type or any combination of such.
No-Closing-Cost Refinance
As the name suggests, you won’t pay refinancing costs upfront. However, you’ll still have these costs associated with your refinance. The lender will either roll these into your new loan increasing your principal or you’ll receive a higher interest rate.
Rate-and-Term Refinance
A Rate-and-Term Refinance typically results in a new mortgage with a lower interest rate, reduced payment, shorter term, new loan type or any combination of such.
No-Closing-Cost Refinance
As the name suggests, you won’t pay refinancing costs upfront. However, you’ll still have these costs associated with your refinance. The lender will either roll these into your new loan increasing your principal or you’ll receive a higher interest rate.
Cash-Out Refinance
A Cash-Out Refinance occurs when a loan is taken out on property already owned, and results in the borrower tapping their home’s equity and receiving cash at closing.
Cash-In Refinance
The opposite of a Cash-Out, a Cash-In refinance is where the borrower makes a large lump sum payment on their home during the refinance process resulting in a new mortgage with a smaller principal balance.
Cash-Out Refinance
A Cash-Out Refinance occurs when a loan is taken out on property already owned, and results in the borrower tapping their home’s equity and receiving cash at closing.
Cash-In Refinance
The opposite of a Cash-Out, a Cash-In refinance is where the borrower makes a large lump sum payment on their home during the refinance process resulting in a new mortgage with a smaller principal balance.
Short Refinance
If you’re currently in default on your mortgage payments, a Short Refinance may be right for you. Lenders can sometimes help you avoid foreclosure with this option.
USDA Rural Streamline Refinance
An option if you already have an existing USDA loan. No appraisal is required, must be your primary residence and two options are available: Streamline-Assist and Standard.
Short Refinance
If you’re currently in default on your mortgage payments, a Short Refinance may be right for you. Lenders can sometimes help you avoid foreclosure with this option.
USDA Rural Streamline Refinance
An option if you already have an existing USDA loan. No appraisal is required, must be your primary residence and two options are available: Streamline-Assist and Standard.
VA Interest Rate Reduction Refinance Loan
If you have an existing VA loan that’s been open at least 210 days and are current on your payments you may qualify for a VA IRRRL. You must demonstrate a clear financial benefit such as a lower rate or payment.
FHA 203(k) Refinance
Remodel your home with a contractor and roll the costs of renovation in with an FHA 203(k) refinance. And great news, your existing mortgage does not need to be FHA. Available in a Limited and Standard option.
VA Interest Rate Reduction Refinance Loan
If you have an existing VA loan that’s been open at least 210 days and are current on your payments you may qualify for a VA IRRRL. You must demonstrate a clear financial benefit such as a lower rate or payment.
FHA 203(k) Refinance
Remodel your home with a contractor and roll the costs of renovation in with an FHA 203(k) refinance. And great news, your existing mortgage does not need to be FHA. Available in a Limited and Standard option.
FHA Streamline Refinance
If you have an existing FHA loan that is at least six months old without any delinquent payments you can get an FHA Streamline Refinance and it generally doesn’t require a home appraisal or credit check.
FHA Cash Out Refinance
You can get cash out of your home with an FHA Cash Out Refinance as long as you have 20% equity after it’s complete. Funds can be used for anything and you don’t need to have an existing FHA loan to qualify.
FHA Streamline Refinance
If you have an existing FHA loan that is at least six months old without any delinquent payments you can get an FHA Streamline Refinance and it generally doesn’t require a home appraisal or credit check.
FHA Cash Out Refinance
You can get cash out of your home with an FHA Cash Out Refinance as long as you have 20% equity after it’s complete. Funds can be used for anything and you don’t need to have an existing FHA loan to qualify.