Mortgage Refinance Guidelines

By locking in a lower interest rate or extending the term of a mortgage loan.

Mortgage refinance guidelines. Requirements for refinancing a mortgage. Fha rate term refinance rate and term refinance is a no cash out refinance of an fha mortgage where all proceeds are used to pay existing mortgage liens on the property being refinanced and costs associated with the new refinance transaction. Refinancing simply means that you replace your existing mortgage with another mortgage with a different rate and term. In most cases you can qualify to refinance your mortgage with at least 20 equity and an ltv ratio of up to 80.

Advertiser disclosure disclaimer you ve heard about the benefits that can come from a mortgage refinance like getting a lower interest rate that can save you money on your monthly mortgage. You pay off your current mortgage with the proceeds from a new loan. While it may be possible to refinance with a higher ltv ratio you may have to pay private mortgage insurance pmi expenses if you do so which can reduce the value of the refinancing. Refinancing a mortgage provides lots of advantages for some homeowners.

Guidelines to refinance a mortgage. For the purposes of the example below we re assuming you are refinancing your primary residence. There are no mortgage seasoning requirements for existing fha mortgage compared to six months seasoning required by the streamline refinance.