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What Types of Refinancing Options Does Fellowship Home Loans Offer?
In some ways, we’re similar to other lenders. We offer the typical types of refinancing other lenders offer, but we look at each client a little differently, discussing the options with them to make sure we understand their needs, their hopes for the future, and their lifestyles now. Our refinancing options include:
Adjustable Rate Mortgages.There are times when considering an adjustable rate mortgage can provide an ideal solution. Homeowners planning to move in the near future but needing additional funds today may find it advantageous to apply for an adjustable rate loan. While there are certainly disadvantages to this type of loan, an honest lending officer can discuss the pros and cons with a borrower to determine if the option really is in the homeowner’s best interest.
Fixed Rate MortgagesMost borrowers are likely to find a fixed rate home loan is their best option. A fixed rate mortgage doesn’t change over the years, meaning borrowers have the security of knowing their principal and interest payments won’t change over the life of the loan. Given today’s low rates, it’s quite possible rates will not be lower for the duration of the loan. Should rates, for some reason, be lower at some point in the future, refinancing again would be an option. Again, working with a Fellowship Home Loan expert will make it easy for homeowners to determine if they should go ahead and refinance now.
FHA FinancingFHA has several types of plans available to borrowers, but two refinancing products are particularly important for those seeking to refinance an existing mortgage. An FHA Cash-Out Refinance makes it possible for homeowners to access their equity while refinancing the remaining debt. Since there are no limitations on what the borrower can use the funds for, it’s a great option for some homeowners needing access to cash. The FHA Streamline Refinance allows homeowners to quickly reduce their existing interest rate. The process is fast and the amount of required paperwork is lower than some other options.
Conventional RefinancingDepending on the borrower’s needs, a conventional loan may work well. Since the end result is much the same as the FHA option, it simply becomes a matter of determining which type of financing best fits the borrower’s current needs. A loan expert will explain the nuances of each option to make sure you understand exactly what the ramifications of a conventional loan are.
HARP RefinancingThis program was initiated to help borrowers with little equity refinance and avoid losing their homes. The program works well for some individuals who have made an honest attempt to keep up with their current mortgage payments but are experiencing financial difficulties. The current program is set to expire at the end of 2016, so those who need access to this type of program should take advantage of the opportunity soon.
Each refinancing option differs from the others in several ways, so it’s always important to explore all the available options to ensure you’re selecting the best one to meet your specific objectives.