We all know that refinancing is a great way to get more favorable terms on your mortgage. But did you know there are many different types of refinancing options available? Whether you want to save money or get lower payments, we can help! In this blog post, we will discuss the 4 most common types of refinancing and how they might work for your needs.
Most Common Types Of Refinancing
Most Common Types Of Refinancing
Fixed Rate Loan
When you get a fixed rate loan, your interest rate will be locked for the life of your mortgage. This means that regardless of what happens with market rates, your monthly payment is guaranteed not to change! Fixed Rate Loans are a great option for those who plan to stay in their home for many years and think rates could rise soon.
Adjustable Rate Refinance
If you are someone who expects to move or refinance again in the near future, an adjustable rate loan could be right for you. With this type of refinancing option you typically get a lower rate initially, however, it will change on a set schedule over time after the initial payment period. This is a great option if you are looking to take advantage of low rates but plan to move before the end of the introductory fixed-rate period.
FHA & VA Refinance
If you have an FHA or VA loan, refinancing to a lower rate is extremely easy. For those with an FHA home loan, you can refinance up to 97% of your current value and avoid paying mortgage insurance. With VA loans, there are more flexible qualification guidelines than those for conventional loans. Both of these options allow for low down payments and flexible credit & income requirements.
Cash-Out
A cash out refinance is one of the best options if you have equity in your home and want to keep the same payment. With this type of option, your monthly payments will stay about the same but you'll receive a lump sum "cash-out" which can be used for whatever purpose you choose!
In summary, there are many different types of refinancing options available. Whether you want to save money, reduce your payments or do a cash-out refinance, we can help! Contact us at (347) 793-9236 for more information on the different loan types and how they may benefit you.