Which Refinancing Loan Option
Is Right for You?

With a cash-out refinance, you get a new mortgage loan that pays off your old one and provides you with cash to remodel your house, consolidate debt, or cover huge expenses like college tuition. The amount of cash you can borrow is determined by the amount of equity you have in your home. Note: You cannot borrow the entire value of your home.

With a cash-in refinance loan, you put a large sum of money into the refinancing process, rather than taking it out, paying down a chunk of your mortgage balance. This will lower your loan-to-value ratio (LTV) and increase your home equity amount, potentially resulting in lower monthly payments or a lower interest rate. This refinancing option is best for people with underwater mortgages (more is owed on the mortgage than the property value) or homeowners who don't currently have a significant amount of home equity to tap.

With a rate and term refinance, you can change an existing mortgage's interest rate and loan terms. This loan option is typically advantageous when refinance rates are lower, and you can get more favorable terms with the lender. The mortgage loan amount remains unchanged. However, depending on the loan changes, you may have lower monthly mortgage payments or pay off your home faster than you had intended.

With no-closing-cost refinancing, you don’t have to pay closing expenses upfront. Instead, these costs are rolled into the principal balance and/or reflected in a higher interest rate. This form of refinance loan allows you to free up cash for other spending while spreading refinancing fees across future mortgage payments. If you expect to sell your house within the next several years and won't be able to recoup your closing expenses, a no-closing-cost refinance may be a suitable option.

Conventional loans feature the lowest interest rates but the strictest borrowing criteria. The interest rate won’t change for the life of the loan. You may be eligible for a conventional refinance regardless of whether your original mortgage was conventional, FHA, or VA. The refinancing qualification process is similar to that of purchasing: You must meet the borrowers’ standards specified by two federally sponsored organizations, Fannie Mae and Freddie Mac. Meeting such benchmarks opens the door to more flexible funding options.

An FHA Streamline Refinance can be a good choice for homeowners with Federal Housing Administration (FHA) loans who want to cut their monthly payments without going through the FHA assessment process again. If you currently have a conventional loan, it is not eligible for this type of refinance. We offer a credit-qualifying streamline refinance—where your credit score and debt-to-income ratio are reassessed—and a non-credit qualifying option, depending on your circumstances.

Available to military veterans and active service members with Department of Veterans Affairs (VA) loans, this loan allows qualified borrowers to potentially lower their monthly payments and interest rates, shorten or lengthen the loan term, or change from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage. Proof of service and occupancy are required to qualify.