Posts in Mortgage Refinance
What was FHASecure Refinance?

In years gone, homeowners with adjustable rate mortgages who found it hard to make their monthly payments could count on an FHA solution to avoid foreclosure. The FHASecure refinance loan was the Federal Housing Administration’s answer to the growing foreclosure problem.

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When Should You Refinance a Home?

When you refinance a home, you replace your mortgage with a new home loan with different terms. Many people decide to refinance to get better terms -- and, while there are a variety of refinancing options, if you like your mortgage, you probably don’t need to refinance.

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Can You Refinance a Balloon Mortgage?

Can you refinance a balloon mortgage? Thankfully, you can. And unless you’re simply rolling in dough, you may be forced to refinance. A balloon mortgage is a home loan with a short term, often 5 - 7 years, after which the rest of the loan is due in one large payment, called a balloon payment. Since most people don’t have this balloon payment sitting in a Swiss bank account somewhere, they usually either refinance the loan, convert the loan to a fixed-rate mortgage, or sell the home before the payment is due.

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Can you refinance a VA loan to a conventional loan?

If you have a VA loan on your current home, you can refinance it into a conventional loan-- but it might only make sense in a few, very particular situations. Since conventional loans typically have higher interest rates and charge monthly private mortgage insurance (PMI) premiums, you probably wouldn’t want to refinance your VA loan just to save money on your mortgage payments.

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Can you refinance a VA home loan?

If you have a VA loan, can you refinance it? The answer is a resounding yes. There are several reasons why a borrower might want to refinance their VA loan, including trying to get a lower interest rate, increasing or decreasing the term of their mortgage, and tapping the equity in their home in order to get some cash.

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Can you do a cash out refinance on a VA loan?

Unlike typical cash out refinancing, a VA cash out loan actually allows you to take out cash with a 100% loan-to-value ratio (LTV). That means you can take out all of the equity in your home and convert it to cash. For example, if you have a $300,000 home and you owe $200,000 on it, you could get the entire remaining $100,000 in equity at closing (minus any closing costs.)

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Can You Refinance An Investment Property?

If you own an investment property, you might be wondering whether you can refinance it like your primary residence. The answer is yes-- but it might be somewhat more expensive to do. Since investment property home loans are considered high-risk than primary home loans, you may have to jump through a few hoops to get a lender to go through with your refinance.

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Cash-Out Refinance in Relation to Home Loans

A cash-out refinance allows you to take out a mortgage that’s larger than your current home loan-- and you get to keep the difference, in cash. For example, if you own a $400,000 house and owe $150,000 on the current mortgage, you have $250,000 in home equity. If you needed $40,000 to pay an expense like medical bills or a child’s college tuition, you could potentially take out a loan worth $290,000.

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How Much Does It Cost to Refinance Your Mortgage?

Your mortgage is great, but sometimes you wish you had something a little bit different. Maybe you’d like one that’s a little shorter, or one that had a little bit less interest or perhaps it’s not even about the mortgage itself, you just want to cash out your home’s equity. Before you tell your current mortgage that it’s not it, it’s you, it’s smart to figure out how much it will cost to get into a different loan. 

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Can I Refinance from a 30-Year Mortgage to a 15-Year Mortgage?

When it comes to getting a mortgage refinanced, you generally have plenty of options. Do you want an FHA or a conventional? Would you prefer a cash out refinance or do you just want to get a change in your terms? Do you want fries with that?One of the more common questions people have when they’re considering a refinance is if they can magically change their 30 year mortgage into a 15. And the answer, from pretty much every banker ever, is a resounding yes -- with some qualifiers.

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How Many Times Can You Refinance Your Mortgage?

In theory, you can refinance as many times as you want. Some lenders will want to see that you’ll make the payments first, so they’ll require a short period between mortgages to establish that you are actually capable of paying (six months is a common seasoning period). Others will charge you a penalty for paying your existing mortgage off before it was due.

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What Happens to the Equity in Your Home When You Refinance?

When you’re considering your first refinance mortgage, you’re full of questions. How much will this cost me? Is it really the right move? What even happens to my equity during this transaction? The good news is that it probably won’t cost as much as you think, but the equity in your home is affected by the type of refinance mortgage you choose.

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Can I Refinance My Home with an FHA Loan?

No matter what kind of mortgage loan you have on your home now, if you’re considering refinancing it, the whole world’s your oyster. That mortgage can usually be refinanced into anything else, including the popular FHA program. Before you jump into an FHA refinance, however, let’s look at what it actually involves. There may be additional fees involved that aren’t part of your current financial picture.

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What Are the Pros and Cons of Refinancing Your Home?

Buying your house was definitely the right choice, but now that you’ve been paying on your loan a little while, you’re starting to wonder if you should take advantage of some of the mortgage rates that are being offered to homeowners willing to refinance.  After all, you, too, would enjoy a lower monthly payment and some cash in your pocket. But there has to be some sort of catch, right? 

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How Does Mortgage Refinancing Work?

You’ve had your mortgage a few years now and have already built up some equity. Lately, you’ve been thinking it might be time to consider refinancing. You’re really hoping you’ll get a better rate, maybe shed that mortgage insurance -- the whole thing sounds pretty awesome overall. But how does mortgage refinancing work?

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Cash Out Refinance in Relation to Home Loans

A cash out refinance uses your home equity to issue a new loan to replace the old one and give you a cash payout. Say your home is valued at $400,000 and your mortgage stands at $250,000 which means that your home equity is $150,000 ($400,000-$250,000). Using your home equity as collateral you can take out a new loan of $320,000, which will cover the $250,000 mortgage and get a cash payment of $70,000 ($320,000-$250,000).

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