What You Can Do with a Mortgage Loan Refinance?
You have a lot of options when you decide to refinance your home mortgage. You can
- • Free up equity for home improvement projects.
- • Lower your monthly payment.
- • Change the term of the loan to fewer years so that you pay down your equity faster.
- • Choose between federally backed and private loan options.
- • Tap into existing home equity for living expenses once you are over the age of 62.
Houston refinance mortgage rates fluctuate daily and are comparable to conventional mortgage loan rates. We offer the most competitive refinance rates in the industry, and we are happy to help you calculate various refinance
You need an excellent credit rating to secure the most competitive industry rates. Scores of 740 or more are desirable; a score of 680 or less makes it hard to find a competitive rate.
You will need to show proof of regular employment in the form of several months’ pay stubs, as well as a copy of your income tax return and W2 form.
You will need to have a loan-to-value (LTV) ratio of 80 percent to be eligible to refinance your existing mortgage, the same as you would need to avoid paying
private mortgage insurance (PMI) on a primary loan.However, there are federally backed loans that allow homeowners to refinance “underwater” loans with an LTV of up to 125 percent.
- •Home equity, or “cash out” refinancing lets you take up to 80 percent of the value in your home and use that money to make improvements on the property, pay off debt, or send your child to college. You must also use a home equity refinance if you want to refinance an existing home equity loan to a lower rate.
- •A VA Streamline Refinance lets qualified borrowers capitalize on lower market rates with very little paperwork involved.
- •Jumbo loan refinancing allows you to take advantage of lower rates or roll a home equity loan into the new refinance.
- •An FHA refinance, like the FHA Home Loan, has less stringent income and credit requirements than a conventional refinance.
- •The Home Assistance Refinance Program (HARP) loans allow you to refinance to a lower rate when the LTV exceeds 80 percent if you meet program eligibility requirements.
Depending on how long you have carried the mortgage, you may be entitled to a break in the cost of the title insurance. Moreover, you will not need to have a new survey of the home done unless you altered the footprint of the home since the time of the previous mortgage.
You will need to consider refinance rates carefully and weigh the closing costs of the refinance against how long you plan on living in this property. You also need to factor in the term of the refinance. For instance, refinancing to a 15 year loan will save you more money over time, but your monthly payments will be lower. Your loan officer can help you find the plan that meets your needs best.
The federal government has protected homeowners from unscrupulous lending practices that led to exorbitant closing costs and has capped the total costs to no more than 3 percent of the loan. You can pay less, particularly if you are willing to negotiate the interest rate. Again, you have to calculate which option works best for you.
Once you filled out the application, been approved, and locked your rate, most refinancing can be completed within 25 days.
Want to Know More About Refinancing Your Home?
Are you ready to have a lower monthly payment? Would you finally like to build the master bedroom suite of your dreams? A home mortgage refinance lets you use the equity in your home to improve your quality of life right now, without waiting until you sell your home, and with rates still low, they are a great solution for many Houston residents.