Rate and Term Finance, Cash-Out Refinance, Debt Consolidation Refinance, FHA Refinance, VA Interest Rate Reduction Refinance Loan(IRRRL)

This is the most common type of refinance where a borrower refinances their existing mortgage to obtain a lower interest rate or change the term of the loan (e.g., from a 30-year to a 15-year mortgage). The goal is typically to reduce monthly payments, save on interest over the life of the loan, or pay off the mortgage faster.

In a cash-out refinance, the borrower refinances their mortgage for an amount higher than the current loan balance and receives the difference in cash. This type of refinance allows homeowners to tap into the equity they've built up in their home for purposes such as home improvements, debt consolidation, or other large expenses. The new mortgage will have a higher principal balance and possibly a different interest rate.

This is similar to a cash-out refinance. With this refinance borrowers use the equity in their house to pay off high interest credit card debt or eliminate a second mortgage/ home equity mortgage debt. This refinance can save borrowers thousands of dollars in monthly payments even if that means taking a higher interest rate on their current mortgage.

Also known as a VA streamline refinance, this refinance option is available to eligible veterans, active-duty service members, and certain spouses with existing VA home loans. It simplifies the refinance process by typically requiring minimal documentation and no appraisal, aiming to reduce the interest rate and monthly payments of the existing VA loan.

This type of refinance is specific to FHA loans and is designed to make refinancing easier and less costly for borrowers with existing FHA mortgages. It typically does not require a credit check or appraisal, but it must result in a lower monthly principal and interest payment or switch the borrower from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.