We offer lender credits that cover non-recurring closing costs for almost all of our refinance loans.
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We consistently beat our mortgage banking competitors in weekly rate comparison surveys ensuring you have the best rate available.
Our mortgage experts will walk you through all your refinancing options.
State of the art technology and extraordinary service make our refinancing process the smoothest in the industry.
We’ll match you with the loan that will save you the most money.
A rate and term refinance is the refinancing of an existing mortgage to lower the interest rate or change the term of the loan (from a 7/1 ARM to a 30-year fixed*, for example) without increasing the loan amount. This is in contrast to a “cash-out” refinance (see Cash-Out below). A key consideration with a rate and term refinance is the amount of closing costs (see our JVM Buyer’s Guide) and how fast borrowers can recoup the closing costs with the savings from a lower mortgage payment.
A rule of thumb is that a refinance makes economic sense if the closing costs can be recouped in four years or less. If a refinance is offered at “no cost” to the borrower (something JVM Lending encourages in most cases), the “recoup analysis” is unnecessary.
Eliminating Mortgage Insurance You can also refinance your existing mortgage simply to eliminate mortgage insurance if you believe you have enough equity in your property. We are more than happy to use the many tools we have available to help you analyze comparable sales and assess whether or not you have enough equity to refinance to eliminate mortgage insurance.
A cash-out loan is the refinancing of an existing mortgage into a larger mortgage that not only changes the interest rate and the terms of the loan, but also advances cash to you. You can use the cash-out for anything of course, including home-improvements, tuition and debt consolidations.
Loan-to-value restrictions and credit standards are tighter for cash-out loans and interest rates are usually higher. You also need to make sure you have sufficient equity to meet cash out guidelines, but our experts are happy to assist with this determination with our free home valuation estimates.
30 YEAR FIXED VS. 15 YEAR FIXED VS. ARM
30-YEAR FIXED VS. 15-YEAR FIXED VS. ARM
While the vast majority of borrowers choose 30-year fixed-rate mortgages*, there are other options available. These include 15-year fixed-rate mortgages and 5, 7 and 10-year Adjustable Rate Mortgages (ARMs).
Most 5, 7, and 10-year ARMs are amortized over 30 years and are actually “fixed” for their initial “start periods” (5, 7 or 10 years) and only become adjustable after their start periods end. You should consider an ARM if the spread or rate difference between the 30-year fixed-rate and the ARM is significant, as they vary depending on market conditions. You should also strongly consider an ARM if you your “time-horizon (how long you intend to stay in home) is short.
15-year fixed-rate mortgages offer lower interest rates (approximately 1/2 %) than 30-year mortgages, but borrowers need to be certain they will be able to afford the higher the payment that comes with the much shorter term. We often encourage borrowers to obtain 30-year fixed-rate mortgages over 15-year mortgages because of the safety and the flexibility provided by the lower payment.