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Refinance Snapshot
There are two types of Refinances: Rate-Term and Cash Out
Rate-Term Refinance
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A Rate-Term refinance is where homeowners refinance only the existing balance of your current mortgage to lower the rate.
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Minimum credit score of 500 with FHA & 620 with Conventional
Cash Out Refinance
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A Cash Out refinance mortgage allows homeowners to refinance their existing mortgage while borrowing additional funds against their home's equity, giving the homeowner cash to use however they would like.
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Homeowners can borrow up to 80% of their primary residence's home value & 75% for an investment or second home.
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Minimum credit score is 620
What is a Mortgage Refinance?
A mortgage refinance is the process of replacing an existing mortgage with a new, typically to achieve better terms, lower interest rates, or to access equity in the home. This can lead to reduced monthly payments, a shorter loan term, or a switch from an adjustable mortgage to a fixed-rate mortgage. Homeowners often consider refinancing to save money over time or to adjust their financial situation according to changing needs. It's important to evaluate the costs associated with refinancing to determine it’s the right financial move.
Why Refinance Your Mortgage
Homeowners should consider refinancing their current mortgage to potentially lower their monthly payments, reduce their interest rate, or access equity for home improvements or other expenses. By refinancing, they can take advantage of favorable market conditions, may lead to significant savings over the life of the loan. Additionally, a refinance can help switch from an-rate mortgage to a fixed-rate mortgage, providing more stability in financial planning. Overall, refinancing offers an opportunity homeowners to improve their financial situation and achieve their long-term goals.
Types of Mortgage Refinances
Homeowners can either refinance their current mortgage balance or withdraw cash from their home's equity. At AsertaLoans, we provide guidance on each loan type, helping you select the best option based on your financial goals, property type, and preferred loan term.
Rate Term Refinance
A rate term mortgage refinance allows homeowners to replace their current mortgage with a new one, often to secure a lower interest rate or change the loan. This can lead to lower monthly payments, reduced interest costs, a shorter loan term, helping them pay off their mortgage faster. It’s a smart strategy for managing mortgage expenses and reaching financial goals.
Cash Out Refinance
A cash-out mortgage refinance allows homeowners to their existing mortgage with a new one for a higher amount than what they owe. This process enables them to access the difference in cash, which can be used for various expenses like home improvements or debt consolidation. It’s a popular option for looking to tap into their home’s equity
Rate Term Refinance
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Replace your current mortgage balance with a new lower rate mortgage.
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Minimum Credit Score: 500 with FHA and 620 with Conventional
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Borrow up to 95% of your home's value
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Pay for your closing costs out of pocket or roll up to $2,000 into the new loan.
Cash Out Refinance
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Get cash from your home's equity.
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Minimum Credit Score: 620
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Borrower up to 80% of your home's value.
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Net cash to you will be 70-80% of your home's value minus your current mortgage balance and closing costs.
Net Cash = 80% × Home's Value - (Current Mortgage Balance + Closing Costs)
Qualifying for a Refinance
Qualifying for a conventional mortgage loan requires meeting certain criteria set by conventional lenders. Here's what you need to know:
Credit Scores and History
A 500 minimum credit score is required for FHA and 620 for Conventional. A higher score will improve your chances of securing better conventional loan rates.
Debt-to-Income Ratio
Lenders will assess your monthly income and calculate your debt-to-income ratio (DTI) to ensure you can comfortably manage your monthly mortgage payments. A DTI of 50% is the maximum DTI for Conventional (and 57% for FHA).
Employment and Income Verification
24 months of employment history is required for a Conventional & FHA mortgage. During underwriting, you'll provide pay stubs, W2s or tax returns to verify employment and income.
Property Type
The type of property you're refinancing will determine your maximum loan-to-value. Refinances are available for single-family homes, townhomes, condos, and manufactured/mobile homes.
Why Choose AsertaLoans for Your Mortgage Refinance?
At AsertaLoans, we pride ourselves on offering some of the lowest-rate refinances, helping you lower your monthly payment by the hundreds or getting you cash from your home's equity. We understand that every client’s financial situation is unique, so we personalize every mortgage loan to your needs.
Whether you’re seeking to lower your interest paid over time or pull out some cash to pay off high interest credit cards, our team has got you covered. Our seasoned mortgage loan officers deliver expert guidance backed by years of experience, leveraging deep knowledge of the Texas and Florida real estate markets.
Reach Out to AsertaLoans, Your Trusted Partner for Refinances
Ready to take the next step on your refinance? AsertaLoans makes it simple to explore lower payments, reduce your rate, or tap into your home’s equity, without the stress. Our mortgage experts tailor options to your goals, walk you through the numbers, and keep the process clear from start to finish. Serving homeowners across Texas and Florida, we’re here to help you refinance with confidence and move forward with a plan that fits your budget.
