Rate and Term Refinance
This is a traditional refinance of a conventional loan, or an FHA loan into a conventional. This type of refinance loan will lower your interest rate and monthly payment. Many people who have an FHA loan will choose to refinance into a conventional loan in order to drop mortgage insurance.
Home Affordable Refinance Program (HARP)
The Obama Administration created the HARP program to help home owners whose property values plummeted because of the housing market crash. With HARP you can refinance your home loan into a lower rate even if you’re underwater on your mortgage. You’ll have to hurry because the HARP program is set to expire in September of 2017.
Home Equity Loans and HELOC
Home equity loan and HELOC loans use the built up equity in your home as collateral for a loan. These are also known as a second mortgage, because you will have two separate payments. A home equity loan provides you will a lump sum of cash up to 80% of the market value of your home. A HELOC works like a credit card, giving you a line of credit you can borrow from as you need it. You only pay interest on the amount borrowed.
A cash-out refinance is where you refinance your mortgage and get cash out using the equity in your home. You will have just one monthly mortgage payment and the rates are lower than they typically are with a home equity loan. As with a HELOC, you can cash out up to 80% of the value of your home with a cash out refi.
Government home loans such as FHA, VA, and USDA also offer a refinance program. FHA streamline refinance is a quick and easy way to refinance your FHA loan into a new lower rate. The great thing about streamline refinances is that they do not require a credit check or income verification. The process is “streamlined” and requires much less paperwork than a traditional refinance.