Mortgage Refinance Programs
Mortgage refinancing replaces an existing mortgage with a new loan. Depending on the homeowner's goals, property equity, financial qualifications, and available loan programs, refinancing may be used to change loan terms, access available equity, or restructure existing mortgage financing.
Common Refinance Goals
Why Homeowners Consider Refinancing
Homeowners may consider refinancing for a variety of financial reasons. Refinancing does not automatically result in financial savings, and costs and long-term financial effects should be carefully considered.
- Seek a different interest rate or loan structure.
- Change the length or term of their mortgage.
- Convert between certain adjustable-rate and fixed-rate mortgage options.
- Access available home equity through a cash-out refinance when eligible.
- Consolidate certain debts using available home equity, when appropriate.
- Remove or change mortgage insurance when program requirements permit.
- Refinance from one eligible mortgage program into another.
Refinance Option
Rate-and-Term Refinance
A rate-and-term refinance generally replaces the existing mortgage without the borrower taking substantial cash from the property. Depending on available programs and borrower qualifications, homeowners may use this type of refinance to change the interest rate, loan term, or mortgage structure. Refinancing does not guarantee a lower interest rate or reduced monthly payment.
Refinance Option
Cash-Out Refinance
A cash-out refinance allows an eligible homeowner to replace an existing mortgage with a larger mortgage and receive a portion of the available equity in cash, subject to lender and program requirements.
- Home improvements or renovations.
- Debt consolidation.
- Major expenses.
- Investment or business purposes when permitted by the applicable loan program.
A cash-out refinance increases the amount borrowed against the property and reduces available home equity. Borrowers should carefully evaluate the costs and financial impact before proceeding.
Program Overview
Available Refinance Options
Depending on eligibility and the existing mortgage, a range of refinance options may be available. Not every option is available to every borrower.
Conventional Refinancing
Refinancing into a conventional mortgage may be available for eligible borrowers who meet applicable lender and program requirements.
FHA Refinancing
FHA refinance options may be available for eligible borrowers with an existing FHA or other mortgage, subject to FHA and lender guidelines.
VA Refinancing
VA refinance programs may be available for eligible veterans and service members, subject to VA eligibility and lender requirements.
Jumbo Refinancing
Refinancing for higher-value properties with loan amounts above conforming limits may be available, subject to lender underwriting guidelines.
Investment Property Refinancing
Refinancing options for eligible investment properties may be available depending on the property type, equity, and lender requirements.
Rate-and-Term & Cash-Out
Both rate-and-term and cash-out refinance structures may be available depending on the loan program, property equity, and borrower qualifications.
Eligibility Factors
Refinance Qualification
Refinance qualification may depend on a number of factors reviewed by individual lenders during the application process.
Important Consideration
Costs of Refinancing
Refinancing can involve closing costs and other expenses. Borrowers should compare the potential benefits of refinancing with the costs of obtaining the new mortgage.
- Lender fees
- Appraisal fees
- Title and settlement charges
- Government recording charges
- Prepaid taxes and insurance when applicable
- Other third-party closing costs
Ready to Begin?
Explore Your Refinance Options
Connect with Marisol Charleus and the Prosper Path Group team to discuss your refinance goals and explore the programs that may be right for you.
Refinancing is subject to borrower qualification, property eligibility, available equity, lender underwriting guidelines, and applicable loan-program requirements. Interest rates, loan terms, closing costs, loan-to-value limits, and program availability are subject to change. Refinancing may result in higher total finance charges over the life of the loan. Not all applicants or properties will qualify.
NMLS #25710 | Licensed in NY · NJ · PA · FL | Equal Housing Opportunity