What Types of Mortgage Loans Do I Have to Choose From When Refinancing?
Just like a first mortgage, you have many types of refinance loans to choose. Here are some of the most popular: 1. 30-year fixed mortgage rate • Offers a low fixed rate with a monthly payment due to the long term. • Your credit, income and assets must be verified to qualify. • Cash-out refinancing is available up to 85% of the home value through FHA and 90% for Conforming. Mortgage insurance is required over 80%. 2. 15-year fixed mortgage rate • The conditions are the same as a 30-year-fixed rate, but the rate is slightly lower because the term is shorter. 3. Jumbo Loans • These are loan amounts higher than $417,000. • Either fixed-rate or adjustable-rate mortgages can be applied to Jumbo Loans. • You can refinance up to 90% of the home’s value with private mortgage insurance. 4. Interest only mortgage • Interest only payments can be made for the first 3, 5, 10 or 15 years of the loan. • You’re free to make voluntary principal-payments during the interest only periods of the loan to r