Streamline refinancing is designed to simplify the mortgage refinance process. It typically requires less paperwork and offers a faster, easier process.
This type of refinancing is offered with government-backed loans like FHA and VA loans.
However, Lendistry Home Loans offers conventional refinancing options for borrowers seeking similar benefits and more, including updates to their rate and loan term and cashing out their equity.
Our conventional refinance options are crafted to remove as many hurdles as possible, making refinancing more accessible, especially for business owners and residents in underserved communities who might benefit from refinancing to improve their financial standing.
Get started with a conventional refinance today.
What does streamline refinancing mean?
The term streamline refinance refers to a simplified refinancing process for existing loans, typically for FHA and VA loan borrowers.
It’s mainly used to reduce interest rates and monthly payments with minimal documentation and underwriting, allowing for a quicker process.
Is conventional streamline refinancing available?
While a streamlined refinance process isn’t officially available for conventional borrowers, Lendistry Home Loans offers conventional refinancing options that help clients cut through the red tape and get their benefits quickly.
Our team will evaluate your current interest rate, credit history, and financial situation to determine the best refinance option for you.
Whether you’re seeking a rate and term refinance or a cash-out refinance, our team of mortgage professionals will clearly explain your options and discuss the potential terms you qualify for.
Refinancing is particularly beneficial for borrowers in underserved communities, as it helps to secure better loan terms efficiently and without stress.
Refinancing your conventional loan
Conventional loans are not backed by any government agency and typically require a stronger financial background from borrowers.
If you’re considering refinancing your conventional loan, it’s essential to understand the requirements that come into play.
Typically, lenders look for a good credit score, a stable debt-to-income (DTI) ratio, and a certain level of equity in your home—often reflected in the loan-to-value (LTV) ratio.
For those working with Lendistry Home Loans, the process includes reviewing your income and credit history to ensure you meet specific refinancing criteria.
Key requirements for conventional loan refinancing:
- Seasoning: Homeowners current on their mortgage and have made payments on time for the last six months can refinance their loan.
- Credit score: Typically, a credit score of 620 or higher is necessary to qualify for most conventional refinancing options. Higher scores can secure better rates.
- Debt-to-income ratio: Lenders prefer a DTI of 50% or less. This indicates that half or less of your monthly income goes towards debt payments.
- Loan-to-value ratio: For the best terms and to eliminate private mortgage insurance (PMI), 20% equity in your home is ideal. This is particularly relevant for rate and term refinances.
- Employment verification: Consistent income is key. Lenders will verify your employment and income history to ensure stability and capability to repay the new loan terms.
- Home appraisal: Similar to the initial purchase, refinancing requires a home appraisal to determine the current market value of your property. This affects how much you can refinance and on what terms.
Why should I refinance my conventional loan?
Refinancing your conventional loan isn’t just about shifting numbers—it’s about aligning your mortgage with your current financial goals and lifestyle needs.
Here’s why it might be a smart move.
Lower interest rates
Imagine paying less interest each month. Refinancing can reduce your current rate, which can add up to significant savings over the life of your loan.
Reduced monthly payments
Life changes, and so does your budget. If your financial situation has evolved since you first bought your home, refinancing could adjust your monthly payments to a more manageable level.
You’ll gain the breathing room you need to handle other important expenses or save for the future.
Adjust your loan term
Sometimes, you need flexibility. Maybe you’re earning more and can handle higher payments to clear your mortgage sooner, or perhaps you need to extend the term for lower monthly payments.
Refinancing can adjust the timeline of your loan to suit your current situation better.
Cash-out opportunities
If your home has increased in value, that equity is a resource you can tap into. Do you need funds for a major renovation or to cover college tuition?
A cash-out refinance can turn your home’s built-up value into accessible cash, helping you invest in your family’s future without high-interest loans.
Alternative refinance options for conventional loans
When considering refinancing your conventional loan, you have a few savvy options that can reduce both the hassle and the cost.
These alternatives are particularly helpful for business owners and residents looking for straightforward solutions without the traditional red tape.
Appraisal waivers
If you’re refinancing a loan underwritten by Fannie Mae or Freddie Mac, you might be eligible to have your appraisal waived entirely under certain conditions.
This saves you the appraisal fee and speeds up the refinancing process, allowing you to take advantage of lower rates more quickly.
Mortgage recasting
Have you come into some extra cash? You can recast your mortgage by applying a lump sum towards the principal of your existing loan. Your loan is re-amortized to reflect the new balance, often resulting in lower monthly payments.
It’s a simple move that can adjust your budget with minimal paperwork and without resetting the term of your loan.
Dropping PMI early
Private mortgage insurance (PMI) is an additional cost that can be required if your initial down payment is less than 20%.
However, once you build up 20% equity in your home through payments or appreciation, you might be eligible to have the PMI removed.
This can significantly reduce your monthly expenses, freeing up funds for other investments or spending needs.
Refinance and save with Lendistry Home Loans
At Lendistry Home Loans, we specialize in community-driven lending that supports your financial goals.
Our conventional loan refinance options can help you lower your payments or adjust your loan terms.
We’ll guide you through the process until your refinance loan is finalized.