Conventional Refinance

There’s typically no waiting period required between loans. What you should consider is your own personal financial timing on the matter. It’s smart to discuss factors like closing costs, interest rate options and any changes in your financial situation with your lender when considering a refinance.

A conventional cash-out refinance can be used to consolidate debt. With a loan of this type, you can take equity from your home to pay off your other debts. You can opt for a fixed-rate mortgage or an adjustable-rate mortgage, depending on your plans and needs. The low rates offered on conventional home loans are often much more favorable than the high variable rates imposed on credit cards and other forms of debt.

If you refinance your mortgage to a new conventional loan with a longer term, a lower rate or both, your monthly payment would most likely end up being lower than what you currently pay. In addition, if you are able to eliminate mortgage insurance through a refinance, you will no longer have to pay for that monthly expense.

Yes. In most cases, you can refinance out of nearly any type of mortgage. Whether you want to switch from an adjustable-rate mortgage (ARM) to a fixed-rate loan, change the term of your current mortgage or move from an FHA or VA loan to a conventional one, a conventional refinance can help you better align your mortgage with your financial goals.

Yes. FHA Streamline refinances are only available to homeowners with a current FHA mortgage, whereas conventional refinances are available to homeowners with any existing loan type. FHA streamline refinance loans don’t have all of the same income verification and appraisal requirements that conventional refinances do, but they come with other specific rules and restrictions that conventional refinances do not.

Most likely, yes. Unlike an FHA loan, conventional home loan refinances can be obtained for second or vacation homes, investment properties and other asset types aside from your primary residence.

An adjustable-rate mortgage (ARM) refinance starts with a low, fixed interest rate for the first several years. After that, the rate becomes variable and adjusts at set intervals based on a market index, which means your monthly payment could increase or decrease. A fixed-rate refinance locks in the same interest rate for the life of the loan, providing stable and predictable monthly payments.

To apply for a conventional mortgage, you will select a lender, complete a mortgage application and then provide your lender with any documents or other items needed in order to establish proof of your income status, credit score, and financial history. After the application stage, your conventional refinance loan will go through the underwriting stage, and then, finally, closing.