Refinancing a mortgage is the process of revising and replacing the terms of an existing mortgage loan.
Why do homeowners refinance?
Homeowners refinance their homes for many reasons. The most common reason is to lower the interest rate. Refinancing also can be done to change the payment schedule and other loan terms. Additionally, if you need extra cash or are looking to consolidate your debt, a cash-out refinance can help.
A cash-out refinance gives you money you need when you need it most. Have a long list of home improvements you want to tackle? Interested in building an in-law suite or purchase a small income property? A cash-out refinance allows you to take the equity in your home, turn it into cash and put it to work. You also may use this money to consolidate debt and lower monthly bills.
FHA Streamline Refinance
An FHA streamline refinance can lower your interest rate and monthly mortgage payment. When interest rates are low, you could save thousands of dollars with an FHA streamline refinance. There is also the possibility to save eliminating the need to pay private mortgage insurance. And because an FHA refinance can lower your monthly payments, you can pay off other expenses with the money you save.
VA Streamline Refinance
If you’re a veteran or active military member and your current interest rate is higher than the rates available today, it might make sense to refinance. All past and present military members with a VA loan have the opportunity to refinance their mortgage with a VA streamline refinance, which offers favorable terms.