MANSFIELD — Knowing when to refinance your mortgage into a new loan with better and more favorable terms is a topic that must be carefully considered by responsible homeowners.
Mortgages are incredibly affordable across the country at the moment, and refinance rates are only slightly higher than the record lows reached a few years ago. This is very good news for homeowners, because now may be the best time to refinance your mortgage before rates increase.
Refinancing can help you manage your financial situation and achieve your financial goals in a number of ways:
• You can shorten the term on your current mortgage
• Consolidate multiple debts into one easy-to-manage loan
• Change the term on your mortgage
• Free up cash to pay off debts
• Obtain a lower interest rate
• Refinance an adjustable rate mortgage loan into a fixed-rate loan
Below are some specific programs that may help your financial situation:
FHA Streamline Refinance
This refinance option is often referred to as a “streamline” because it allows you to refinance quickly, often without an appraisal. The FHA Streamline Refinance program also reduces the amount of paperwork that must be completed by your lender, therefore saving you time and money.
FHA Streamline 203K Refinance
This program allows you to refinance additional funds for qualified repairs on your home. The idea behind the program is to fix up a home that is in need of repair with the goal of increasing its market value.
FHA Standard 203K Refinance
Similar to the FHA Streamline 203K Refinance loan, this program also allows you to refinance additional funds for qualified home improvement and repairs.
HARP Refinance
This program can help you refinance your current mortgage if you’ve had trouble obtaining traditional refinancing due to a lack of home equity or you owe more on your home than it’s currently worth.
VA Streamline Refinance (VAIRRRL)
If you already have a VA home loan, this refinance option may help you benefit from a lower interest rate and monthly payments. No appraisal or credit underwriting package is required.
USDA Streamline Refinance
This refinance loan is an option for people who have participated in the USDA home loan program for the purpose of lowering their interest rate. Since you have already qualified for the original loan, the streamlined process of this refinance option reduces paperwork and shortens the time to close on the loan. Additionally, a property inspection is not required and closing costs can be absorbed into the financing, requiring less money upfront.
Refinancing your mortgage may help you secure your financial future. Consider your needs and long-term goals, then contact a lender to learn which options may be best for you.
About Roy Stevens
Roy Stevens (NMLS221164) is a branch manager and licensed loan originator with CrossCountry Mortgage, Inc., a nationwide mortgage lending and refinancing company headquartered in Brecksville, OH. His office is in Mansfield, OH.
CrossCountry Mortgage, Inc. is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the Federal government. Certificate of Eligibility required for VA loans. All loans subject to underwriting approval. Certain restrictions apply. Call for details. NMLS3029 (www.nmlsconsumeraccess.org). Equal Housing Opportunity.
