Mortgage Loan Refinancing
When homeowners look to save money, refinancing mortgage loans is a great place to start. When interest rates drop, people stand to save thousands with mortgage loan refinancing opportunities. When the Federal Reserve committed to lower interest rates then lenders and banks responded by offering 30-year fixed rates below 4% for the first time ever.
Do You Qualify for Mortgage Loan Refinancing? With foreclosure rates remaining high, lenders are less likely to offer a bad credit mortgage, so make sure you keep your credit score above 600.
Best Mortgage Refinancing Loans
- 15-Year FHA Refinancing at 3.25%
- 30-Year FHA Refinancing at 3.75%
- Conventional Home Refinancing
- VA Mortgage Refinance Loans
Do You Need Mortgage Insurance with Government Refinancing like FHA? Yes in most cases, FHA will require you to pay mortgage insurance monthly. This is the offset for no equity refinancing. If you are under 90% loan to value and you are refinancing with a 15-year mortgage, than FHA will waive the insurance requirement.
Are Mortgage Refinancing Loans Available If You Have No Equity? Refinancing with no equity is always a challenge because the bank has no recourse to salvage profits if you default on the loan. With that being said, there are several government initiatives that enable underwater refinancing. FHA offers a short refinance program and Fannie Mae and Freddie Mac sponsor a program that enable homeowners to refinance regardless of how much greater their mortgage is than their property value. You must currently have a mortgage that is owned by Freddie Mac or Fannie Mae to be eligible for this government refinancing option. Ask your loan officer if you are a candidate for the Home Affordable Refinance.
Mortgage Refinancing to Eliminate PMI - Chances are that if you purchased your home with less than a 20% down-payment, you are likely paying mortgage insurance monthly. Mortgage loan refinancing is very popular with homeowners who are looking to eliminate paying PMI every month. If you made your mortgage payments on time for the last few years, you may meet the requirements for mortgage refinancing loans, you may have earned enough home equity to wipe out the mortgage insurance requirements.