In this article, we will cover and discuss the types of refinance mortgage options we have to offer our borrowers. Gustan Cho Associates is a mortgage broker licensed in 48 states with over 170 wholesale mortgage lenders in its lending network. Think to refinance mortgage options are dead? Think again! Gustan Cho Associates can price out a mortgage loan program with the best terms and rates for our borrowers. Why not do an analysis if you would get a net tangible benefit with refinancing your home loan.
What Is The Advantage of Refinancing?
Refinancing today may allow homeowners to lower their monthly payments. Homeowners can save more money over the life of their loan. There are other reasons homeowners need to refinance their current mortgages. It may be due to them getting a divorce and the need to get the ex-spouse off the note. Or it may be that non-occupant co-borrowers may need to be taken out. Many homeowners purchased their homes via seller financing and their balloon term may be coming up. Others purchased their home with hard money loans or private loans and need to pay off the short term loan. Whatever the reason may be, homeowners normally refinance their home loans because of net tangible benefits to them.
Which Refinance Mortgage Options Is Right For You?
One of the frequently asked questions we get often from our clients is what are my refinance mortgage options and benefits for me? In a nutshell, a lower mortgage rate will save homeowners tens of thousands of dollars over the term of the loan. A lower interest rate on your mortgage means a lower monthly payment with savings on interest expenses. Refinance mortgages may benefit the homeowner with a shorter payoff term. There are other benefits for the borrower for refinancing. The homeowner may need to tap into their home equity to do a cash-out refinance for repairs, or other reasons.
How To Get The Best Mortgage Refinance Rates
On refinance mortgages, the lender cannot do the refinance mortgage if the loan officer does not see a net tangible benefit for the borrower. The mortgage business is extremely regulated. By law, lenders cannot churn borrowers and recommend refinance mortgage options where there is no net tangible benefit to borrowers.
What Refinance Mortgage Options For Best Rates For Lower Payments
Here are some refinance mortgage options homeowners get a net tangible benefit with refinancing their mortgage loan:
- Interest rates may have lowered since you took out your current mortgage
- Your credit may have improved since you took out your current mortgage
- You could lower your monthly payments, allowing yourself more spending money each month
- You can consolidate your debt by refinancing
You could make one low monthly payment instead of numerous payments.
FHA Streamline Refinance
Homeowners currently with an FHA Loan can do an FHA Streamline Refinance where they do not have to provide income documentation, no appraisal is required, and no credit scores are required. As long as homeowners have been timely with mortgage payments in the past 12 months their FHA Loan can qualify. It is a fast-track refinance mortgage program offered by HUD. FHA Streamline Refinance with no closing costs and depending on what mortgage rate borrowers are paying, homeowners can save tens of thousands of dollars over the course of their term.
Update on FHA Annual Mortgage Insurance Premium
The Federal Housing Administration has lowered the annual FHA Mortgage Insurance Premium from 1.35% to 0.85% in January of 2015. Homeowners with larger balance FHA Loans can not only save with lower FHA mortgage rates but can save 0.50% in the reduction of their FHA annual mortgage insurance premium. This is a huge saving. Please contact Gustan Cho Associates at 800-900-8569 or email Gustan Cho Associates at gcho@gustancho.com.
Refinance Mortgages From FHA to Conventional To Eliminate FHA MIP
Home prices have skyrocketed since this mortgage blog article was initially written and published. Many parts of this country, just as areas in California, Florida, Georgia, Michigan, Nevada, Texas, and Illinois have seen double-digit annual increases in their property values. Homeowners in an area where their home has appreciated should consult with us and see if we can refinance an FHA loan to a conventional loan. See if we can eliminate FHA mortgage insurance premium. Many homeowners in California are surprisingly shocked to see that their homes have appreciated 20% or more in the past couple of years. Gustan Cho and his associates have done numerous refinance mortgage loans in California where homeowners are refinancing their FHA loans to conventional loans. Due to the appreciation, we are saving homeowners thousands by having the FHA mortgage insurance premium wiped off.
Cash-Out Refinance Mortgage Loan
Homeowners who have equity in their homes can do a cash-out refinance where they can pay off their original home loan and get a larger mortgage loan. They can use the cash proceeds to pay off old debt, consolidate debt, or for any reason they like such as investments. FHA allows up to 85% loan to value on a cash-out refinance mortgage loan and conventional refinance mortgage loan allows up to 80% loan to value. Department of Veterans Affairs allows up to 100% LTV cash-out refinance.