If you’re considering refinancing your mortgage, you may be wondering what your options are. Here are some of the most common types of refinance mortgages to consider:

1. Rate-and-term refinance: A rate-and-term refinance is a loan that is used to change the interest rate, loan term, or both on an existing mortgage. This type of refinance is typically used to lower the borrower’s monthly payment, reduce the interest rate, or shorten the loan term. A rate-and-term refinance does not typically involve taking out any additional money (other than what is needed to pay off the existing mortgage), so it does not result in a larger loan balance.
2. Cash-out refinance: A cash-out refinance is a loan that is used to take out additional money in addition to what is needed to pay off the existing mortgage. This type of refinance is typically used to tap into the equity (the value of the home minus the remaining mortgage balance) that has built up in the property. The borrower can use the cash for any purpose, such as home improvements, debt consolidation, or other expenses. A cash-out refinance results in a larger loan balance and a higher monthly payment, as the borrower is borrowing more money.
3. Streamline refinance: A streamline refinance is a streamlined version of a traditional refinance, with fewer requirements and a faster process. This type of refinance is only available to borrowers who already have a mortgage insured by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). A streamline refinance does not require an appraisal or credit check, and it can be done with minimal documentation. However, it is only available to borrowers who are current on their mortgage payments and who have made on-time payments for the previous 12 months.

When deciding which type of refinance mortgage is right for you, it’s important to consider your financial goals, risk tolerance, and ability to qualify for the loan. Contact KuberFi Mortgage team with your unique scenario and we will help you with a seamless refinance process.

With access to a wide range of loans and lenders, as an independent mortgage shop, KuberFi is able to help homeowners obtain the best loans and to save borrowers time and money.