Balance Only Refinancing The most common type of refinancing is taking out a completely new loan in the amount of the current balance and paying that amount off. The new loan can be for any set term length.
This loan is most often used to secure a lower interest rate and lowering your monthly principal and interest payment.
Second Mortgage A home equity loan (or second mortgage) makes sense if the borrower wants to pay back the equity in a different period from that covering the remaining principal balance on the first mortgage.
If there is a short term left on the first mortgage and the borrower wants to extend the repayment of the equity for a longer period, or if there is a long term remianing on the first mortgage and the borrower expects to pay back the equity sooner, then a home equity loan makes sense, leaving the primary mortgage intact.
HELOCS A home equity line of credit (HELOC) allows the borrower to cash the equity as needed (for example, as college tuition becomes due), and to have the option to pay back only the interest on the loan until the home is sold or the principal repaid from another source.
If the money is not needed all at once, or the money is only needed for a short period, then a HELOC mades sense.
FHA refinancing is much easier than getting first loan. As long as you have an existing FHA loan, made your payments on time for a year, and have a 620+ credit score you are qualified.
What if I have a low FICO score?
Credit reporting agencies give us professional access to what exactly you can do to increase your scores significantly and quickly
What if I’ve had a bankruptcy?
Most people can secure a mortgage two years after bankruptcy. If you are certain that you will be able to afford a home and all of the costs that come with it, then we can find a mortgage to suit your needs.
What if I am still confused and uncertain about mortgages?
This is completely understandable. Give us a call and I’ll put all the details of your loan on paper and explain each part in easy to understand language.
All closing costs are detailed in the Good Faith Estimate and are included in the loan amount unless paid out of pocket. The seller may also offer a percentage of the sale price to help cover these costs