Conventional Rate & Term Refinance

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Conventional Rate & Term Refinance

Get Pre-Qualified Today &
Shop with Confidence!

The Lowdown on Rate & Term Refi…

A Conventional Rate & Term Refinance is any refinance loan that conforms to guidelines set by Fannie Mae or Freddie Mac. This type of refinance is available with as little as 3% equity with the 97% conventional refinance program.

For a conventional refinance the lender requires an appraisal and documentation regarding the borrower’s income and assets. This program is different than the FHA and VA streamline refinance programs, where neither an appraisal nor income documentation is required.

The Lowdown on
Rate & Term Refi…

A conventional refinance is any refinance loan that conforms to guidelines set by Fannie Mae or Freddie Mac. This type of refinance is available with as little as 3% equity with the 97% conventional refinance program.

For a conventional refinance the lender requires an appraisal and documentation regarding the borrower’s income and assets. This program is different than the FHA and VA streamline refinance programs, where neither an appraisal nor income documentation is required.

Our Rate & Term Refi Rates Are Low & Our Process is Quick

Perhaps the most common conventional refinance loan program is the conventional rate and term refinance. “Rate and Term” simply describes the purpose of the refinance: to lower the interest rate or change the length of the loan term. Rate and Term refinances do not allow the borrower to take cash out.

Borrowers typically use this program when interest rates have fallen below the rate on their current mortgage. The lower rate reduces the borrower’s monthly payment and saves on interest over the life of the loan.

Shortening the loan term may increase monthly payments, but the loan would be paid off earlier. For example, if you’ve been paying on your 30 year loan for 3 years, you have 27 years left. By refinancing into a new 15 year loan, you shorten the time you will be making monthly payments by 12 years. If a consumer refinances their existing loan, the consumer’s total finance charges may be higher over the life of the loan.

This type of refinance can also be used to change an adjustable rate mortgage to a fixed rate, ensuring that monthly payments will not rise in the future.

Our Rate & Term Refi
Rates Are Low &
Our Process is Quick

Perhaps the most common conventional refinance loan program is the conventional rate and term refinance. “Rate and Term” simply describes the purpose of the refinance: to lower the interest rate or change the length of the loan term. Rate and Term refinances do not allow the borrower to take cash out.

Borrowers typically use this program when interest rates have fallen below the rate on their current mortgage. The lower rate reduces the borrower’s monthly payment and saves on interest over the life of the loan.

Shortening the loan term may increase monthly payments, but the loan would be paid off earlier. For example, if you’ve been paying on your 30 year loan for 3 years, you have 27 years left. By refinancing into a new 15 year loan, you shorten the time you will be making monthly payments by 12 years.

This type of refinance can also be used to change an adjustable rate mortgage to a fixed rate, ensuring that monthly payments will not rise in the future.

What is required for an Rate & Term Refi?

Income: Income for a conventional refinance is verified by providing two of your most recent paycheck stubs covering 30 days, two years’ of recent W2 forms, and a two year employment history. Two years’ tax returns may be required for self-employed borrowers.

If you are required to pay any amount of money to close the loan, you will need to supply 60 days’ worth of checking, savings, or money market account statements. These are known as “liquid assets.”

Appraisal and Credit: Conventional refinance loans will require that a new appraisal be completed to determine current market value. The new value is used to establish a maximum loan amount available to the borrower. Appraisals typically cost between $350 and $550, although the cost can be much higher on high-end homes.

In addition, a new credit report will be reviewed. The required minimum credit score varies by lender, but typically a 660 score will help you qualify for most conventional refinance programs.

What’s required for a
Rate & Term Refi?

Income: Income for a conventional refinance is verified by providing two of your most recent paycheck stubs covering 30 days, two years’ of recent W2 forms, and a two year employment history. Two years’ tax returns may be required for self-employed borrowers.

If you are required to pay any amount of money to close the loan, you will need to supply 60 days’ worth of checking, savings, or money market account statements. These are known as “liquid assets.”

Appraisal and Credit: Conventional refinance loans will require that a new appraisal be completed to determine current market value. The new value is used to establish a maximum loan amount available to the borrower. Appraisals typically cost between $350 and $550, although the cost can be much higher on high-end homes.

In addition, a new credit report will be reviewed. The required minimum credit score varies by lender, but typically a 660 score will help you qualify for most conventional refinance programs.

The Rate & Term Refi Process

Here’s how our home loan process works:

  • Complete our simple Rate & Term Refinance Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the mortgage loan offer that best fits your needs

If purchasing a home, you can now start shopping with confidence with an Elite Realtor to find your perfect home.

The Rate & Term
Refi Process

Here’s how our home loan process works:

  • Complete our simple Rate & Term Refinance Qualifier
  • Receive options based on your unique criteria and scenario
  • Compare mortgage interest rates and terms
  • Choose the mortgage loan offer that best fits your needs

If purchasing a home, you can now start shopping with confidence with an Elite Realtor to find your perfect home.

Get Your FREE Loan Quote Now!

Get Your FREE
Loan Quote Now!

Whether you’re buying a new home, refinancing, looking for a cash-out, or just have questions about the process, our Elite Team of Mortgage Professionals will help you find the right mortgage solution!

Whether you’re buying a new home, refinancing, looking for a cash-out, or just have questions about the process, our Elite Team of Mortgage Professionals will help you find the right mortgage solution!

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