What Types of Mortgage Loans Do I Have to Choose From When Refinancing?

What Types of Mortgage Loans Do I Have to Choose From When Refinancing?-Lead to a substantial increase in U.S. new home sales is a major factor in historically low interest rates, as well as the U.S. government to purchase a home for the first time the tax incentives. U.S. Federal Reserve has pledged to 1.25 trillion U.S. dollars with the purchase of mortgage securities, to make the real estate market, and lower borrowing costs for the real estate market. These procurement as well as government measures to make direct purchase of government bonds, has a 30-year mortgage rates fell to a record low in April of 4.78%; Another measure is Obama for the first time home buyers the Government to implement the 8000 U.S. dollars tax credit policy.

Just like a first mortgage, you have many types of refinance loans to choose. Here are some of the most popular:

1. 30-year fixed mortgage rate

• Offers a low fixed rate with a monthly payment due to the long term.?/li>
• Your credit, income and assets must be verified to qualify.?/li>
• Cash-out refinancing is available up to 85% of the home value through FHA and 90% for Conforming. Mortgage insurance is required over 80%.

2. 15-year fixed mortgage rate

• The conditions are the same as a 30-year-fixed rate, but the rate is slightly lower because the term is shorter.

3. Jumbo Loans

• These are loan amounts higher than $417,000.?/li>
• Either fixed-rate or adjustable-rate mortgages can be applied to Jumbo Loans.?/li>
• You can refinance up to 90% of the home’s value with private mortgage insurance.?/li>

4. Interest only mortgage

• Interest only payments can be made for the first 3, 5, 10 or 15 years of the loan.
• You’re free to make voluntary principal-payments during the interest only periods of the loan to reduce the balance.
• This mortgage will bill you only for your interest due each month, resulting in a lower payment mortgage than a conventional “principle and interest” mortgage.
• Additional principal payments must be made in order to pay the down the balance.

5. No Document refinancing loan

• Least amount of documentation is required for those with good credit who don’t want the hassle of supplying income verification, tax statements or financial history.?/li>
• Tax returns or W-2s are not required.
• No Longer Offered!

6. Second mortgage or home equity loan

• This type of loan is often used for debt consolidation or cash out purposes.
• Loan available up to 90% of the home value (minus the balance of your first mortgage) up to $250,000 for terms of 5, 10, 15, 20 or 30 years.
• Credit scores of 700 or higher are usually required

Of course, a mortgage broker you trust can also help you determine which mortgage loan is best for you when refinancing.

What Types of Mortgage Loans Do I Have to Choose From When Refinancing?-21 Federal Reserve Chairman Ben Bernanke said the U.S. economy is showing “signs of stabilization in the time being,” “real estate market has been slowing down.” The warmer the real estate market has been reflected in stock prices, the real estate’s share price has begun to rise, Standard