What Is a Mortgage Refinance Loan?

Mortgage Dallas Jeff Berman

Refi Options

  • Adjustable Rate Mortgage
  • 30-year fixed rate
  • 15-year fixed rate
  • Cash Out refinance
  • Jumbo refinance
  • FHA refinance
  • VA refinance
  • USDA refinance

Home Loan Refinance

Are you getting the most from your current mortgage? If interest rates have gone down lower than your current mortgage rate, you want to change the terms of your loan, you have an improved credit score and feel you can improve your loan opportunities, or you want to get some cash out, now may be a great time for you to refinance your home loan!

Why Refinance?

  1. More tax deductions1
  2. Improve credit scores
  3. Consolidate debt
  4. Lower interest rates

 

The chart below gives you a summary of the types of refinance loans available. Keep reading for more information, or contact Jeff Berman “The Mortgage Go To Guy”, at 214-989-7700 or complete the form below to help you determine the best match for your situation and needs.

Disclaimer: Interest rates fluctuate, but Jeff will work hard to find the best rate for your financial situation. Refinances require verification of employment or self-employment.

 

Conventional

TypeLimitBest forAdvantages
Adjustable Rate MortgageConforming
  • Short-term homeowners
  • Clients with future income growth potential
  • Low initial interest rate
30-year
fixed rate
Conforming
  • Long-term homeowners looking for stability
  • Long-term interest rate and monthly payment stability
15-year
fixed rate
Conforming
  • Clients looking for stability and speedy payoff
  • Interest rate & payment stability
  • Faster equity/payoff
  • Less overall interest
JumboAffordability
  • Clients seeking higher value
  • No limit
  • Covers more value

 

 

Government-insured

TypeLimitBest forAdvantages
FHABased on the area
  • Clients with limited credit or income
  • Low down payment
  • Easier credit and income requirements
VAAffordability
  • Eligible past/present service members and spouses
  • Low interest rate
  • Low down payment
  • Costs covered
USDAAffordability
  • Limited income clients in USDA designated rural areas
  • 100% financing
  • Assists limited income clients

Contact Jeff Berman “The Mortgage Go To Guy”, at 214-989-7700 or complete the form below, to evaluate your current mortgage and see if a refinance loan is a smart choice for you!

Options for Your Mortgage Refinance Loan

Conventional Mortgage Refinance

Conventional mortgage refinance loans are those not insured by a federal agency such as the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA) or the U.S. Department of Agriculture (USDA). Conventional options come in many varieties—fixed-rate, Adjustable-Rate Mortgage (ARM), conforming (loan limit set each year), non-conforming/jumbo, etc.

Adjustable-Rate Mortgage Refinance

Adjustable-Rate Mortgage (ARM) gives borrowers a lower introductory interest rate for the first few years of a home loan. This helps short-term owners take advantage of a lower interest rate. ARMs can also be a great option for home owners who can expect to have a higher income in the later years of their loan term after the introductory period is over and the rate starts to adjust.

30-Year Fixed Rate Mortgage Refinance

The 30-Year Fixed Rate Home Loan  is the gold standard of the mortgage industry. They are the perfect choice for homeowners who expect to settle in their house for a long period of time. The 30-Year Fixed Rate Home Loan gives long-term stability with one predictable monthly payment amount and a fixed interest rate over the three decades of the loan. There is no fear of increased principal and interest payments nor fluctuations in interest rates.

15-Year Fixed Rate Mortgage Refinance

The 15-Year Fixed Rate Home Loan provides the same stability as the 30-year fixed rate option. While the 15-year option has a higher monthly payment, it builds home equity faster, and you pay less interest over the entire term.

Cash Out Mortgage Refinance

Your home may be worth more than what you owe on your mortgage: either you have lived there a long time, done some major updates, or current market prices are rising in your area. The difference between your home’s value and what you owe on it is your available equity, and when you choose a cash out refinance, you can gain access to that extra equity. This gives you extra cash for educational costs, renovations, consolidating debt, or anything else you need cash for. Cash out mortgage refinances are available for Conventional, FHA, and VA.

Jumbo Mortgage Refinance

Each county in the United States has a “conforming loan limit” set by the federal government. Conforming loans remain at or underneath this dollar limit. However, lenders can make so called “jumbo loans” that exceed the conforming limit. By being able to borrow more, borrowers can reduce the down payment required for an expensive home.

Contact Jeff Berman “The Mortgage Go To Guy”, at 214-989-7700 or complete the form below, to evaluate your current mortgage and see if a conventional refinance loan is a smart choice for you!

Government Mortgage Refinance

There are also loans available that are insured or guaranteed in part by a government agency. These include FHA Loans, VA Loans, and USDA Loans.

FHA Mortgage Refinance

The Federal Housing Administration (FHA) runs several lending programs that can help homebuyers with limited credit or income, including first-time homebuyers. Government-insured FHA home loans—which come as fixed-rate or ARMs—offer affordable interest rates, a low minimum credit score and a down payment as low as 3.5 percent.

VA Mortgage Refinance

VA Home Loans are partially guaranteed by The Department of Veterans Affairs (VA) and are available to eligible past and present service members and spouses. The “guaranty” can bring with it no down payment, reduced interest rates, coverage of costs and no maximum amount other than what your credit and income can support.

VA Jumbo Refinance

VA Jumbo Loans are available to eligible service members for loan amounts greater than the federal conforming loan limit for the local area.

USDA Home Loan Refinance

USDA Home Loans help low and moderate income homebuyers in USDA (United States Department of Agriculture) designated rural areas—including some small towns, suburbs and exurbs. By providing up to 90% coverage, the USDA empowers eligible applicants to borrow the entire value of the loan, eliminating the need for a down payment. These 30-year fixed rate home loans require no mortgage insurance and have no limit beyond what you can pay.

 

Are you eligible to refinance with a government home loan? Contact Jeff Berman “The Mortgage Go To Guy”, at 214-989-7700 or complete the form below, to walk you through the process.

 

1Jeff Berman, The Mortgage Go To Guy, and Elite Financing Group are not authorized to give tax advice. Please consult your tax adviser for tax advice on your specific situation.

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