IN LAS VEGAS
A mortgage refinance, to simply put it, is re-working your existing loan into a new one to give you a better rate and payment. There are many reasons that home-owners decide to refinance. If you have a high interest rate and want to take advantage of the lower rates, then this option can lower your payment. You can also do this if you have been making your payments for a long period of time and you would like to reduce your loan mortgage payment. If you want to pay off your mortgage sooner than 30 years, you can do that as well.
want to make some improvements on your home and don't have the money for it, a cash-out refinance would be another option. You can take advantage of the equity on your home and get some cash back! Your Las Vegas Mortgage Broker can help find the best option for you.
A STANDARD MORTGAGE REFINANCE
One type of mortgage refinance is rate and term refinance. You can refinance your current mortgage in order to better your rate and your term. You can better your rate or your term, doesn’t have to be both. When you choose to better your rate, you will pay less interest over time and you will lower your payment. Your term will be determined by you. You can choose to do a 15-year term or a 30-year term. If you would like to pay off your mortgage sooner, then you can choose a 15-year term. This means your payment would be higher, although your mortgage would be paid off sooner. If you choose a 30-year term, your payment will be lower. With a standard refinance, you could get some cash back! You can get up to $2,000 back with a standard mortgage refinance. One of the great benefits of a refinance, you can include your closing costs into your mortgage loan. Which means you do not have to come up with any money to close. The purpose of refinancing your mortgage is to better your rate and your term, if you choose to do so. Your mortgage broker will let you know exactly what your payment will look like with each rate and term.
For example, if your interest rate is 6% and the rates are currently at around 4.5% then, it may be beneficial for you to refinance. If you want to lower your interest rate even more, you can buy points! These points are based on your loan amount. For example, if your better rate costs 0.750% and your loan amount is $200,000 then, it would cost $1,500. Keep in mind, the better your credit score the better the rate you will receive.
Your Las Vegas Mortgage Broker can find you the best rate and the best program for your financial needs.
A STANDARD MORTGAGE REFINANCE
A cash-out refinance is basically a refinance, but you will receive a lump some of money back when you close. A cash-out refinance takes on the same guidelines as a standard mortgage refinance although, it comes with more money back. You can refinance your mortgage with a better rate and term. You can also choose your term if you would like to pay off your mortgage sooner. However, with your cash-out refinance you will be increasing your loan amount from your previous mortgage. You can use the cash-out for many different reasons. You can use the cash back for debt consolidation or improvements on your home. Keep in mind, a cash-out refinance will be based off how much equity you have on your home. Your cash-out amount will be based on how much your first mortgage will cost to pay off. If you do not have an existing mortgage then, you can take up to $250,000 out!
For example, if your Las Vegas home is worth $300,000 and you do not have any existing mortgages then, you would be able to receive $225,000 max.
This percentage is 75% and considered to be your maximum LTV, which is loan-to-value. If there are any credit cards, loans, etc. being paid off this will be deducted at the end. Also, your closing costs will be put in the loan as well. You do not have to worry about coming up with any closing costs. If applicable, you will have to pay for your appraisal. Your Las Vegas Mortgage Broker will let you know all costs once an application is submitted!
Benefits of a cash-out mortgage refinance:
- Paying off some of your credit card debts, loans, etc.
- Have some extra money in your pocket!
- Receive a better rate and will pay less interest over time.
FHA STREAMLINE MORTGAGE REFINANCE
If you currently have an FHA loan, you may be eligible for an FHA Streamline mortgage refinance. There are two different options you can choose from, credit qualifying and non-credit qualifying. There are some basic requirements you will need to consider when considering a Streamline refinance. Your mortgage must be insured by the Federal Housing Administration. Your current mortgage must not be delinquent, which means you may have one late in the last 12 months but no lates in the last 6 months. Also, you must have your FHA loan for the past 6 months. Your refinance must be beneficial to you. Additionally, your rate and term must be better than your previous loan to qualify. The maximum amount of cash back you can get on an FHA Streamline is $500.
An FHA Streamline has some great benefits. As an FHA loan, there are less requirements and more leniency when qualifying. First, there is no appraisal required. Your home’s original purchase price is considered to be your home’s worth. This could be considered a good thing, if your home has less value than it did previously. Another benefit, there are no verifications of employment, income, or even a minimum credit score.
Contact your Las Vegas Mortgage Broker today if you have any questions on an FHA Streamline Refinance!
Please note that all of these examples that were given were estimates and are subject to change.