With recent increases in home values across most of the country, many homeowners are sitting on a lot of home equity. But what if you want to access some of that money to make home improvements or pay off high-interest debt? It’s possible to withdraw cash from your home equity if you qualify for a cash-out refinance loan. A cash-out refinance replaces your existing home loan with a new, larger loan. The difference between the two loans is the amount of cash you withdraw from the total equity in your home. There are no restrictions on the use ...
Key Takeaways ; A USDA Streamline Refinance can secure better home loan terms or a lower interest rate. ; You’ll need to meet specific USDA refinance requirements for this type of mortgage. ; You’ll need a USDA mortgage to get a USDA refinance, but then you can choose between a streamline-assisted, standard streamline, or non-streamlined refinance.
If you have an FHA loan and think you could get a better deal with a new FHA loan, doing an FHA streamline refinance could be a smart move. At a minimum, you’ll save time and money on an appraisal, which isn’t required for this type of refinance. And if you’re eligible for a non-credit-qualifying loan, a streamline refinance may be the least complicated mortgage you’ll ever close on. An FHA streamline refinance is when you replace your existing FHA loan with a new one without having to provide the same level of documentation or go throu ...
Minimum Credit Score · 580 for FHA and VA refinances, 620 for conventional refinances ; Days to Close · 30–45 days
The existing mortgage must be an FHA-insured loan and a minimum of six payments must have been made. Six full months must have passed since the first payment due date and a minimum of 210 days must have passed since the closing date of the existing mortgage. The existing mortgage must be current and have no late payments for the six months prior to requesting the refinance loan, and no more than one 30-day late payment within the prior seven to twelve months.
In this article: Best refinance lender overall · Best refinance lender overall (runner-up) · Best lender for refinancing conventional loans · Best lender for FHA and VA refinancing · Best lender for refinancing larger loans · Best lender for online resources · Best lender for lowest refinance loan costs · Best lender for USDA refinancing · More about mortgage refinancing · Mortgage lenders that did not make our list · FAQs
Footnote 1 : The rates shown above assume you have a FICO® Score of 740+ and at least 25% equity for a conventional fixed-rate loan, an adjustable-rate mortgage (ARM) loan or a jumbo loan, at least 3.5% equity for an FHA loan and no equity for a VA loan. They also assume the loan is for a single-family home as your primary residence and you will purchase up to one mortgage point. Mortgage points, or discount points, are a form of prepaid interest you can choose to pay up front in exchange for ...
A VA streamline refinance might be the easiest way to lower your interest rate when you have a VA mortgage. This type of refinance usually does not require an appraisal, a credit check or underwriting—three things that normally cost borrowers money and time. VA streamline refinance rates are competitive with conventional loan refinance rates, too. While they do have some restrictions, such as not allowing homeowners to touch their equity, they’re meant to help qualifying military service mem...
Flexible qualification guidelines · Depending on your credit score, you may only be required to have 3.5% equity (or down payment). ; Lower credit requirements · Borrowers can qualify for FHA loans without having a long credit history or good credit score. ; Popular for refinancing · Many borrowers with adjusting ARMs (adjustable-rate mortgages) look to refinance into fixed-rate FHA loans.
Key Takeaways ; If you want to refinance an FHA loan, you have several options, both through FHA programs and conventional loans. ; Some FHA programs require a "net tangible benefit” to refinancing, such as getting a lower rate. ; Refinancing any home loan will require closing costs, which could negate any savings you receive with the new loan.