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Refinancing an Existing Home Loan

People across the world purchase new homes every day. Sometimes, these people get a great deal on their mortgages and have no need to refinance. Many more people find that at some point they have a reason or need to refinance and want to know more about the refinancing process and what type of loans are available.

If you are looking to refinance your home, there are a number of mortgage and refinance options to choose from. The loan options for refinancing are the same as those for getting a new mortgage.

Fixed rate loans. Fixed rate loans are loans where you borrow a set amount of money at a set interest rate for a set amount of years. Fixed rate loans hold the same monthly payment amount for the life of the loan. These loans are good for people that plan to own their homes for many years.

Adjustable rate mortgage (ARM) loans. ARM's usually come with a set number of years, usually about 3 years, during which the loan keeps the same interest rate. After the set period of time is over, the mortgage lender is free to raise the rate, and usually does. These loans come with a lower initial interest rate at first and are good for people who only plan to own their homes for only a short time.

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Hybrid mortgages. Hybrid mortgages are a combination of ARM and fixed rate loans. Hybrid mortgages usually have their rates fixed for longer periods of time than ARM's (for example, a 10-year period), and then the interest rate becomes adjustable. These loans come with a lower initial rate at first and are good for people who plan to live in their homes for a while but know that they will move sooner or later, before the 10-year fixed rate is up.

Interest only loans. With interest only loans, you only pay the interest on the loan for a set amount of time. Then you begin making full payments that include the principal and interest. These loans are good for people who want low payments now but know that they will have the income to make the higher payments by the time the interest only period is over.

All of these mortgage options are available for people who are planning to refinance. For more information on refinancing options and to find out what type of mortgage is the best for you contact us at 800-405-6682.

See a related article: Modifying a VA Loan

VA LOAN SPECIALISTS

We are the online VA Loan Specialists. It is our goal to ensure that your VA Home Refinance process goes as smoothly as possible. Let us help you get the process started online today, or call us at 800-405-6682.

HAVE A QUESTION?

If you need advice concerning a Veteran Home Refinance, feel free to contact a VA Mortgage Specialist online or call 800-405-6682. Specialists can help determine whether a VA refinance is the best financial decision for you.