Refinancing is when you pay off one loan with the proceeds from a new loan using the same property as security. This may be done to receive more favorable rates, lower payments, or a decreased term. It may also be done to receive additional cash.
If your existing mortgage has an adjustable rate and you’re looking for the security of a loan payment that won’t change as rates change, then refinancing to a fixed-rate mortgage might be right for you.
If circumstances have changed and you don’t plan on living in your home long term, refinancing to the terms of an adjustable-rate mortgage might be right for you
If you’re a veteran with a VA loan, then a VA Interest Rate Reduction Refinance Loan (IRRRL) can help you lower your existing interest rate by refinancing your VA home loan, or convert from a VA Adjustable Rate Mortgage to a VA Fixed Rate Mortgage.
If you currently have a USDA rural home loan, you may be eligible for a USDA Streamline Refinance which can help lower your interest rate and monthly mortgage payments.
If you already have an FHA home loan, you may be able to obtain an FHA Streamline Refinance or FHA cashout refinance. You can lower your monthly principal and interest payments and convert your adjustable rate mortgage to a fixed rate mortgage.
If you are lacking equity or are underwater, meaning you owe more money on your home loan than your house is worth, the Home Affordable Refinance Program (HARP) may be right for you. HARP may help reduce monthly payments, change terms of your mortgage and stabilize payments with a fixed rate.