How To Refinance Your Loan
Guide To Refinancing Your Mortgage
Lowering monthly mortgage payments by refinancing into a better interest rate is one of many reasons CO homeowners choose to refinance their current home loans.
The Most Popular Motivations For Refinancing Include:
- Mortgage Rate Drop
- Lower Payments
- New Mortgage Program
- Debt Consolidation
- Cash-Out For Home-Improvement
- Refinancing out of an Adjustable Rate
Denver Refinance Options
There are several loan programs with special guidelines that make it easier to lower your mortgage interest rate or adjust the payment terms. Below is a list of the most popular refinance programs:
- Existing mortgage needs to be insured by FHA
- Borrower must be current on their loan payments
- Refinance must lower monthly principal and interest payments or be converting from an adjustable rate mortgage (ARM) to a fixed-rate mortgage
- Cash-back is not an option for the FHA streamline refinance
The Streamline Refinance (Federal Housing Administration) FHA mortgage was designed to help save time and resources by reducing the typical paperwork and underwriting guidelines required for traditional conventional loans.
The VA Streamline Interest Rate Reduction Refinance Loan, known as the IRRRL, is one of the most common mortgage refinance program for our eligible Veterans and service members.
- Lower interest rate and mortgage payment
- No out-of-pocket expenses
- You Do Not have to use your current lender
- You Do Not have to get a new Certificate of Eligibility
- No cash-out allowed, only a reduction of interest rate
- Not primary residence OK, as long as you certify that you previously owned the property
The VA IRRRL Streamline Refinance is a popular refinance option for eligible VA borrowers due to the streamlined qualification process, limited closing costs and reduced paperwork. The VA IRRRL Streamline was created to help lower the interest rates of homeowners with existing VA mortgage loans.
The VA is very specific on what the refinance must do for their borrower. To ensure that the homeowner benefits from a refinance, the VA requires that the new monthly payment or interest rate must be lower than the current existing mortgage.
- Fannie Mae or Freddie Mac owns or has guaranteed the first loan
- The loan was closed loan prior to May 31, 2009
- Borrowers must be current with mortgage payments
- Borrowers owe more than their home is worth, or there is minimal equity
- All mortgage payments have been prompt in the past 6 months
- No sixty (60) day late payments in the last 12 months.
The Home Affordable Refinance Program was amended in October of 2011 through an agreement between the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac, in order to assist responsible homeowners by allowing them to refinance with today’s low interest rates, regardless how underwater their mortgage is.
- Mortgage to be refinanced must already be a USDA loan
- There must be a financial benefit resulting from the refinance
- Borrower must be current on the present mortgage payments
The United States Department of Agriculture (USDA) created a streamline refinance option with intentions to assist the many thousands of rural homeowners who have been left in a rough financial situation after the collapse of the housing market and who currently have loans insured by the USDA.
Common Refinance Questions
Jody Bruns / NMLS# 831033
Jody is a mortgage lender in Denver and is available at (720) 692-7245 if you have questions about home loans or mortgage programs in CO.
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