What a home refinance does, according to WellsFargo.com, is get you a new mortgage that covers the debt of the old mortgage, plus any additional funds you may require. You can get different rates and different terms with a mortgage refinancing. There are several reasons to refinance your home:
Reasons To Refinance Your Home...
You may want a lower interest rate.
You want to lower your monthly payment.
You want to lessen the length of time to repay the loan.
You want cash for another large expense, like a home improvement, medical bills or tuition.
Peak Home Loans can help to refinance your home with excellent credit, good credit, average credit, below average credit, or with poor credit. We offer home refinancing and mortgages for any credit. Another thing to remember, most people have better credit than they think, usually Fair Credit or better, keep this in mind while filling out our online form.
Home Refinance Programs That Can Help
With a large variety in loan types and programs, you are certain to find a combination that will work for you as long as you have fair, good or excellent credit. Home refinance programs, says SmartMoney.com, include fixed rate loan, fixed rate balloon loans, adjustable rate mortgages (ARM's), and buy downs.
Each program has its own benefits and features:
Fixed rate loans keep the rate and the payment consistent over the length of the mortgage. They amortize over five years increments, from ten years to thirty years. You will not have to worry about market fluctuations influencing your rate or payment.
Fixed rate balloon loans have a set rate and payment for a shorter period of time, normally over three, five or seven years. Then the whole payment is due. If you plan on being in your home only a short period of time, this one may be worth considering.
ARM's have the fixed rate and payment as well, only over one, three, five, seven or ten years. Then the rate rises at fixed intervals, and at predetermined rates. The difference between one rate and the next is called the margin. If you choose this option, you have little of both worlds - a lower set rate while you monitor the market. The ARM adjusts the rate at the end of the period versus a full balloon payment. If you can watch the rate and plan on being in your home a set amount of time, this may work for you.
Buy downs have a fee to buy down the rate the first three years of the loan. You start with a low rate that increases up to three times. You and the lender agree to the number of increases and the amount of the increase at the time of lending. This gives you a low rate and payment the first few years, so this is good for those who need an affordable payment right now or are having trouble qualifying for other types of loans.
There are also loan types that can factor in on your decision. When talking to your lender, they may use terms that you are unfamiliar with when describing a loan.
There are government standards in place for loans through some of the original government programs like Fannie Mae or Freddie Mac. Any type of loan with similar features is referred to as a "conforming" loan, whether the
FM's are involved or not. Those loans are usually from $10,000 to $729,750.
For loans larger than $729,750.00, they are commonly called "Jumbo" loans.
There are two federal agencies that guarantee loans: Federal Housing Administration (FHA) and Veterans Administration (VA). There are referred to as "government loans" and you must meet special qualifications for each type to be considered.
Of course, you still have to meet the lending requirements of the lender. You must have fair, good or excellent credit, a good payment history and proof of employment, usually over a period of time. Your lender can tell you exactly what they are looking for, and what you need if you try for a government loan or mortgage refinancing.
Peak Home Loans can help you seek the best mortgage refinancing terms, rate and payment options. We offer assistance to everyone regardless of their credit status, as long as it's fair, good or excellent. Peak Home Loans is here to help.
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