Refinance Mortgage Solutions
We want you to be informed and comfortable with the type of loan you choose. Below we have provided information on conventional loans and what we offer. When you are ready, our experienced team can help you decide which type is the right fit for you.
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. Lowering your payment is usually the goal. And it’s tempting to refinance with another full 30-year term to really knock down that monthly payment. But that means you’ll end up taking even longer to pay off your house and paying more interest.
You’ll want to take into account how much interest you’ve already paid on your old loan and how much you’ll pay with the refinance. Loans are front-loaded with interest, so the longer you’ve been paying, the more each payment is going toward paying off the principal balance — and the more interest you’ve already paid. Comparing what you’ve paid in interest so far and what you will pay on your current loan versus the refi will give you a solid idea of your total loan costs for either option.
By resisting the urge to extend your loan term, you can instead refinance to reduce the term and to get a lower interest rate, which could significantly reduce the amount of interest you pay over the life of the loan.
Choosing a suitable loan term for your mortgage refinance is a balancing act between an affordable monthly payment and reducing your borrowing costs.
Once you know you have a good reason and you’ve determined it’s the right time to refinance, it’s time to work the numbers. Using a mortgage refinance calculator can help you shop for the best mortgage.
You’ll need to know (or make some educated guesses about) your new interest rate and your new loan amount.
After you input the data, the tool will calculate your monthly savings, new payment, and lifetime savings, taking into account the estimated costs of your refinance.
Working with a refinance calculator will give you a good idea of what to expect. Even better, when you have a few estimates from mortgage lenders you can enter the terms they offer you into the calculator to help determine which one offers the best deal.
FHA loans allow a down payment of as little as 3.5% on a mortgage. This can make it possible for lower- and middle-income borrowers to buy a house when they don’t qualify for a conventional loan — which has stricter requirements, including a higher credit score and bigger downpayment.
FHA-insured loans come with competitive interest rates, smaller down payments and lower closing costs than conventional loans. Another FHA loan perk: A financial gift from a family member, employer or charitable organization can account for up to 100% of your down payment.
However, there’s one downside to FHA loans. Mortgage insurance on a conventional loan can be canceled after your loan is paid down to 80% or more of the appraised value of the home, but FHA mortgage insurance stays for the life of the loan.
You might also want to consider a USDA loan . The U.S. Department of Agriculture — like the FHA — offers guarantees on private loans, and it also does some direct lending of its own for low-income borrowers .