3 Ways To Refinance Your Mortgage

Before you begin, it’s important to consider why you want to refinance your home loan in the first place. That guides the mortgage refinance process from the very beginning. Learn more about the different options you have when refinancing.

Home Refinance Loans or Rate and Term Refinance

This is a traditional refinance of a conventional loan or an FHA loan into a conventional. This type of refinance loan will lower your interest rate and monthly payment. Many people who have an FHA loan will choose to refinance into a conventional loan in order to drop mortgage insurance. Those with traditional 30-year fixed mortgages may choose to refinance to a 15-year term, to save interest and total payback. Others needing cash flow to pay for their kids’ college, retirement, etc. may choose to refinance with a longer term to decrease their monthly mortgage payment.

Cash-Out Refinance or Bill Consolidation

A cash-out refinance is where you refinance your mortgage and get cash out using the equity in your home. You will have just one monthly mortgage payment and the rates are lower than they typically are with a home equity loan. 

Streamline Refinance

Government home loans such as FHA, VA, and USDA also offer a refinance program. FHA streamline refinance is a quick and easy way to refinance your FHA loan into a new lower rate. The great thing about streamline refinances is that they do not require a credit check or income verification. The process is streamlined and requires much less paperwork than a traditional refinance.

Contact First Ohio Home Finance today to learn about your refinance options!