Refinances Loans replace a homeowner's existing mortgage and are great tools to help you make the most of your investment. Whether your property value has increased and you want to refinance out of your mortgage insurance or you want a lower monthly payment, there's a refinance option for you. The loan programs may change, but refinances are generally broken down into two categories, Rate and Term or Cash-Out.
A Rate and Term refinance works exactly as it sounds, giving borrowers the opportunity to trade their current rate for a new interest rate and adjust the term of the loan. Rate and Terms are very useful for borrowers looking to take advantage of lower rates or adjust their term, or length of the loan.
A Cash-Out refinance allows the borrower to take some of the equity they've invested into their home and trade it for cash. This is useful for homeowners that would like to pay off some debt, like credit cards or student loans, renovate their home, or even go on a vacation!
Looking to refinance your VA Loan? A VA Interest Rate Reduction Refinance Loan (IRRRL), also known as a Streamline Refinance, is a great option! Similar to a VA purchase loan, qualified borrowers can get their funding fee for IRRRLs waived and many of the closing costs can get rolled into the loan, so you can lower your rate and/or monthly payment quickly and easily.
Loan product details are subject to change so be sure to check with your Sovereign Mortgage Investments LO for the latest information.