Different Types of Home Refinance Loans Explained
Explore the various types of mortgage refinancing options available, including rate and term, cash-out, cash-in, HARP, and short refinance programs. Learn how each can benefit homeowners looking to lower rates, access cash, or avoid foreclosure. Consulting a financial advisor is recommended to choose the best fit for your situation.
Refinancing has become increasingly popular as mortgage rates stay near historic lows. Even a 1% reduction in your interest rate can lead to significant monthly savings. When exploring refinance options, it’s important to find the loan that best fits your financial situation. Below are the main types of refinance mortgage loans to consider before making your choice:
- Rate and Term Refinance: The most common type, where you pay off your existing mortgage and replace it with a new loan at a lower interest rate and different terms.
This option is ideal for homeowners aiming to reduce their interest rate or modify their loan structure.
Note: This website provides general information based on research and expert opinions. However, mortgage options can vary by individual circumstances and lender policies. Always consult a financial professional before making refinancing decisions, as the landscape can change rapidly.
