Conventional refinancing is a good option for homeowners with a minimum of 20% equity and good credit history.
Cash Out Options
In a Cash-Out Refinance, the homeowner increases their loan balance by a minimum of five percent. The additional amount borrowed is typically paid as cash at closing to the borrower. Occasionally, a Cash-Out Refinance Loan is used to consolidate debt for the borrower. In these instances, the additional amount goes directly to creditors to pay off outstanding debts.
Rate-and-Term Refinance Option
Rate-and-Term Refinance Loans change the rate and/or time period of a loan, while the amount of the loan generally remains the same. This lowers the borrower’s monthly mortgage payments. By refinancing your existing loan, the total finance charges may be higher over the life of the loan. Having trouble meeting monthly payments on your mortgage or other debts? A Rate-and-Term Refinance Loan may help you reduce your total monthly expenditures.
No-cost Refinance Option
The No-cost Refinance Option helps borrowers who want to refinance without paying the fees and costs of refinancing at closing. The total loan amount includes these costs, allowing the borrower to spread out the payments over the life of the loan.
Choosing the No-cost Refinance Option may affect the term and/or the rate of the refinancing loan. Be sure to discuss the benefits of deferring closing costs and fees for your situation with your Trident Home Loans representative.
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