At a Glance
- Down payment as low as N/A
- Minimum credit score of 620+
- Best for homeowners looking to improve their loan terms
Refinancing your mortgage can be a smart financial move, whether you want to lower your monthly payment, reduce your interest rate, shorten your loan term, or access your home's equity. With various refinancing options available, we'll help you find the right solution for your goals.
Rate-and-Term Refinancing
The most common type of refinance, rate-and-term refinancing replaces your current mortgage with a new one at a different interest rate, term length, or both. This can lower your monthly payment, reduce the total interest paid, or help you pay off your home faster.
Cash-Out Refinancing
If you've built equity in your home, a cash-out refinance lets you borrow more than you owe and receive the difference in cash. This can be used for home improvements, debt consolidation, education expenses, or other financial needs. You'll typically need at least 20% equity remaining after the refinance.
Streamline Refinancing
If you have an FHA, VA, or USDA loan, you may qualify for a streamline refinance with reduced documentation and faster processing. These programs are designed to make refinancing easier for borrowers who are current on their existing government-backed loans.
Eligibility Requirements
- Sufficient equity in your home
- Good payment history on current mortgage
- Stable income and employment
- Credit score requirements vary by program
- Debt-to-income ratio within guidelines
- Property appraisal (may be waived for some streamline programs)
Frequently Asked Questions
When does refinancing make sense?
Generally, if you can reduce your rate by 0.5-1% or more, plan to stay in your home long enough to recoup closing costs, or need to access equity, refinancing may be beneficial.
What are the costs of refinancing?
Closing costs typically range from 2-5% of the loan amount. Some lenders offer no-closing-cost options in exchange for a slightly higher rate.
Can I refinance with bad credit?
Options exist, though rates may be higher. FHA streamline refinances focus on payment history rather than credit scores.