Mortgage refinance loans

Just like a first mortgage, you have many types of refinance loans to choose. Here are some of the most popular:

1. 30-year fixed mortgage rate

• Offers the lowest rate available in exchange for the long term.
  
• Your credit, income and assets must be verified to qualify.
  
• Cash-out refinancing is available up to 80% of the home value or 90% with private mortgage insurance.

2. 15-year fixed mortgage rate

• The conditions are the same as a 30-year-fixed rate, but the rate is slightly higher because the term is shorter.

3. Jumbo Loans

• These are loans on homes valued at more than the federally mandated loan limit of $417,000.
  
• Either fixed-rate or adjustable-rate mortgages can be applied to Jumbo Loans.
  
• You can refinance up to 90% of the home’s value with private mortgage insurance.

4. Interest only mortgage

• Interest only payments can be made for the first 3, 5, 10 or 15 years of the loan.
  
• You’re free to make voluntary principal-payments during the interest only periods of the loan to reduce the balance.
  
• This refinance option reduces your monthly payment compared to a traditional loan in which you also pay the balance each month and therefore saving you money.

5. Second mortgage or home equity loan

• This type of loan is often used for debt consolidation or cash out refinancing.
  
• Loan available up to 100% of the home value (minus the balance of your first mortgage) up to $150,000 for terms of 5, 10, 15, 20 or 30 years.
  
• Credit scores of 640 or higher are usually required.