A Home Mortgage Refinance can be used to lower your monthly mortgage payment, reduce the term of your mortgage, or grant you cash from the equity in your home. The mortgage refinance has become increasingly popular as interest rates have remained low and home values high.
Refinance programs are most commonly know as either "Cash Out" or "Rate and Term." A "Cash Out" refinance is when you extract cash from the equity in your home. A "Rate and Term" refinance is when you take advantage of lower rates to either lower your monthly payment or shorten the term of the loan.
Interest rates are generally higher for refinance loans of the "Cash Out" variety. Other factors that may impact the interest rate of a refinance would be the ratio between the proposed loan balance and the current home value (LTV) or FICO credit scores of the borrower.
Government Programs have been implemented in an effort to assist borrowers who wish to refinance but have found their homes to worth less than they owe. Under the Obama administration, HARP (Home Affordable Refinance Program) allows non FHA borrowers who last financed their home prior to May 31 of 2009 the potential
opportunity to refinance at current market rates.
In addition the more common programs listed above, we also offer HUD insured Renovation and Home Addition refinance Mortgage programs. These refinance programs allow you borrow based on the assumption of the increased value of the completed renovation or addition project. This allows homeowners to tap into equity that they otherwise would have no access to. These refinance loans do require a fully licensed contractor, contractor references, contractor estimates, and permits. Funds are dispersed at intervals throughout the project. An approved consultant is required when rehab or addition costs exceed $35,000
Best Rate Mortgage offers refinance mortgage loans for owner and non-owner occupied single family homes, condominiums, and multifamily apartment buildings. We do not offer mortgage loans for land, commercial buildings, or single wide trailers