Conventional Refinance

 

During the life of a conventional mortgage, there often comes a time when the terms or conditions no longer fit the homebuyer’s situation. This is when many borrowers look at options to refinance their loan either by revising the payment schedule or replacing it completely with a new loan that offers better terms.

There are many reasons why a homebuyer might look at the options for refinancing, including the chance to take advantage of a better interest rate, reducing monthly payments, switching from variable to fixed rate loans, or changing from a conventional to a VA home loan.

 

Are You Ready to Refinance?

If you are considering a refinance, you need to carefully evaluate your needs. Check your credit history before starting the refinance process and make sure there are no errors and that all past-due bills or collections are fully paid off. You should get this done at least 60 days before you start the process to make sure you that any errors are completely expunged.

 

Refinance to a VA Loan

If you are eligible to refinance from your conventional loan to a VA mortgage, there are a lot of potential benefits. Veterans who purchase a home without these benefits can choose to refinance their mortgage and take advantage of lower interest rates.

In order to refinance like this, though, your mortgage must be current or paid to date at the time you apply for the refinance. If your loan is delinquent you will have to get approval from the VA to refinance. We can help you determine if you are eligible to use a VA loan and whether or not this is the time to refinance your conventional mortgage.