Whether to Refinance Your Home

James O'Brien is a mortgage industry professional writing articles about home mortgage loan topics. Please visit the Refinance refinance calculator access and to learn more about home loan options along with all the nuts and bolts of mortgage refinancing.

Looking to refinance? If you are a qualified veteran who is eligible for a VA home loan, you could look into a VA home loan refinance for your existing home loan. The loan offered by VA refinance programs can help you save money and tap into the advantages of a first VA home mortgage.

Loan exit and application fees had been $1,200 so in the first year of the mortgage, they have still saved $996. Nonetheless in the second year the saving increases by $1,200, plus the curiosity benefit of the offset account.

However, there are cases when Texas cash out refinance is not the best option. One of these situations is if you have credit card debts that are far beyond your repayment possibilities and you want to consolidate them and lower the interest rate. Obtaining a ten year financing for your credit can be quite a challenging task, as you would have to keep paying for the credit card bills for ten more years. In this situation, applying for a home equity loan would be the right choice. This is because a home equity loan usually has lower closing costs, and if you have a great credit, you may be able to benefit from no closing costs. However, Texas cash out refinance would require you to pay the same closing costs as the ones with regular mortgage. The only benefit here is that you can generally secure in a lower interest rate compared to the home equity loans.

You also must be able to show that you have suffered a financial hardship are are in danger of falling behind if you aren't already delinquent, and that you have not been convicted of a felony in connection with a mortgage or real estate transaction the last 10 years.

The terminology mortgage companies use in advertisements is often the cause of the discrepancies. When lenders promote no-closing-costs mortgages, people generally assume the loan will be free. Since most borrowers do not know the difference between settlement fees and closing cost, they simply interpret "no closing cost" to mean absolutely no fees or costs. This is what confuses most people.

Getting a lower mortgage rate without creating a considerable raise in your mortgage insurance premiums is one of the chief advantages of the FHA Streamline refinance. Annual (paid monthly) and upfront mortgage insurance premiums on new FHA loans today are set at 1.25 percent and 1.75 percent of the loan amount, respectively. An FHA Streamline refinance will reduce those premiums to .55 percent and .01 percent (upfront premiums are $10 for each $100,000 of the loan amount). However, reduced premiums are only available to borrowers with an existing FHA loan that was endorsed before June 1, 2009. FHA loans endorsed after that date will incur the new higher premiums when refinanced.