Potentially eliminating mortgage insurance: A conventional refinance is a more stable loan from the perspective of the lender, which can reduce the need for monthly mortgage insurance payments.
Why Should You Refinance?
Simplify your monthly payments and secure your home with a Conventional Refinance
Leverage your home equity: You have more home equity when you qualify for a conventional refinance loan, which means that you may be able to take out a larger loan for additional needs.
Take advantage of better rates: Depending on interest rates, you may be able to secure better terms when you qualify for a conventional refinance than when you first took out the loan.
The FACTS about Home Refinance Loans
Refinancing can save you money: One technology provider for the mortgage industry believes that 5.9 million homeowners could cut 0.75% from their mortgage rate with a conventional refinance.
Home prices are only going up: If you can pay less money to own a home in the current market, you’ll be saving yourself a lot of headaches. The chief economist of the National Assocation of Realtors expects 2019 prices to be over 2% higher than they were in 2018.
It’s a good time to own more of your own home: It’s been a “seller’s market” since 2012, according to NerdWallet.com, which means that owning a greater percentage of your own home (as is required in a conventional refinance) helps you maximize your equity.
It pays to strike while the iron’s hot: One of the most important things about a conventional refinance is that it allows homeowners to lock in favorable interest rates. Mortgage rates fell since 2018 in the first half of 2019, which suggests now is as good a time as any. Low rates, lower payments, and equity that’s never been more valuable. Is now the time for you to consider a conventional refinance?
Potentially smaller payments: Using a conventional refinance on a mortgage can help you simplify and cut the monthly payments you make, giving you more financial wiggle room to own your home.
If you haven’t closed a new home purchase or refinance within the last 18 months, you’re likely eligible for mortgage rates ranging from 2.5% – 3.0%*. This offer is…
UNBEATABLE: Significantly better pricing than banks and other lenders
FLEXIBLE: Includes 30-year fixed, 20-year fixed, and 15-year fixed options
FAST: Close in less than 30 days
SPECIFIC TO HOMEOWNERS: Available on home purchases & rate/term refinances of primary or secondary residences. Conventional loans only.
LOCAL: Property must be located in California.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
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Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What Do You Need to Know about Refinancing?
What is a conventional refinance loan?
“Conventional” means that this refinance loan is what most people mean when they talk about refinancing their home. Refinancing means changing the existing terms of the loan, usually to secure better terms for the homeowner. You can use this strategy to lock in lower payments.
Can I refinance from an FHA loan to a conventional refinance loan?
You can, provided that you meet certain criteria, such as owning enough equity in the home. A conventional home loan typically requires that you purchase as much as 20% of the home’s equity in the form of a down payment. If you have more equity, the better your chances will be of securing a favorable refinance.
What are the advantages of refinancing?
Numerous! You can save money, lower your monthly payments, and potentially even lower or eliminate the cost of monthly mortgage insurance. You can also shorten the term of the loan if you want to take advantage of a higher income to make a long-term investment in the ownership of your home.
Should I get a fixed rate or variable rate loan?
There’s no one answer for this. Generally, if your goal is to lock in current interest rates, a fixed rate loan can be highly favorable; variable rate loans are less predictable, but they typically mean that you’ll have lower payments in the short-term future, which increases your home affordability.
What stays the same if I refinance?
You won’t change the amount of principle owed on the loan, which means that home refinancing is not a “shortcut” except that it may be easier to make your monthly payments. Your collateral on the loan also will likely not change.