Question 1

When does it make sense to refinance?

Accepted Answer

A good rule of thumb is when you can lower your rate by at least 0.5–1%. But refinancing also makes sense to switch from an ARM to a fixed rate, shorten your term, or consolidate debt.

Question 2

Will refinancing reset my loan term?

Accepted Answer

It can, but doesn't have to. You can refinance into a shorter term to pay off faster, or a new 30-year term to lower your payment. I'll help you weigh the trade-offs.

Question 3

How much does it cost to refinance?

Accepted Answer

Closing costs typically run 2–3% of the loan amount. We'll calculate your break-even point — the time it takes for monthly savings to outweigh the upfront cost.

Question 4

Will refinancing hurt my credit?

Accepted Answer

Minimally. The credit pull is a soft hit (a few points) that recovers within months. The long-term financial benefit dwarfs the short-term score dip.

Question 5

Can I roll closing costs into my refinance?

Accepted Answer

Yes — closing costs can be added to the loan balance or covered by a slightly higher rate (lender credits). I'll show you both options so you can choose what fits.

Question 6

How long does a refinance take?

Accepted Answer

Typically 30–45 days from application to closing. Streamline refinances on existing FHA, VA, or USDA loans are much faster.

Question 7

Can I skip a mortgage payment when refinancing?

Accepted Answer

It often feels that way — your old loan is paid off mid-month, and your new loan's first payment isn't due until the following month. You're not skipping anything; the interest is just rolled into the payoff.

Question 8

Should I refinance to get rid of PMI?

Accepted Answer

If you're at 20%+ equity, yes — refinancing can drop PMI immediately. We'll compare that to just requesting PMI removal on your current loan, which doesn't require a new mortgage.

Question 9

What is an FHA streamline refinance?

Accepted Answer

It's a simplified refinance for existing FHA borrowers. Minimal documentation, often no appraisal needed, and faster closing. You just need to show a net tangible benefit — like a lower rate.

Question 10

Can I refinance from FHA to conventional?

Accepted Answer

Yes — and it's a smart move once you have 20%+ equity. You'll eliminate both the upfront and monthly FHA mortgage insurance premiums.

Question 11

Do I need an appraisal for an FHA streamline?

Accepted Answer

Usually no — the FHA streamline is designed to be fast and low-cost. You'll skip the appraisal in most cases, but you can opt to include one if you want to drop mortgage insurance.

Question 12

What is 'net tangible benefit' on an FHA streamline?

Accepted Answer

The new loan must save you money — typically a meaningful drop in your combined principal, interest, and mortgage insurance payment, or a switch from ARM to fixed. The lender documents this benefit.

Question 13

Can I take cash out with an FHA refinance?

Accepted Answer

Yes — FHA has a separate cash-out refinance program (not a streamline) that allows up to 80% LTV. Different requirements apply, including a full appraisal and credit check.

Question 14

How soon after my FHA loan can I streamline refinance?

Accepted Answer

You need to make at least 6 monthly payments and the loan must be at least 210 days old. After that, you're eligible.

Question 15

Will the FHA streamline lower my mortgage insurance?

Accepted Answer

Possibly. If your original FHA loan was endorsed before June 2009, the streamline gives you significantly reduced mortgage insurance premiums.

Question 16

Can I remove a co-borrower with an FHA streamline?

Accepted Answer

Generally no — you cannot add or remove borrowers on a streamline (with limited divorce/death exceptions). For that, you'd need a standard FHA refinance.

Question 17

What is a VA IRRRL?

Accepted Answer

The Interest Rate Reduction Refinance Loan is a streamlined VA refinance. Minimal paperwork, no appraisal in most cases, and the funding fee is only 0.5%. It's designed to make saving money as easy as possible.

Question 18

Can I do a cash-out refinance with my VA loan?

Accepted Answer

Yes. VA cash-out refinances can go up to 100% of your home's value — one of the most generous cash-out options available. Great for consolidating debt or funding home improvements.

Question 19

How much does a VA IRRRL cost?

Accepted Answer

Closing costs are minimal and the funding fee is just 0.5% (vs. 2.15–3.3% on a purchase). Many costs can be rolled into the loan, so out-of-pocket can be near zero.

Question 20

Do I need to live in the home for an IRRRL?

Accepted Answer

You only need to certify that you previously occupied the home — it doesn't have to be your current primary residence. Great for veterans who've moved and rented out their old home.

Question 21

Can I switch from a fixed VA loan to an ARM with an IRRRL?

Accepted Answer

Generally you must move toward stability — fixed-to-fixed or ARM-to-fixed. Fixed-to-ARM IRRRLs are rare and require a meaningful rate reduction.

Question 22

How long do I have to wait to do a VA IRRRL?

Accepted Answer

210 days from your first payment and at least 6 monthly payments must be made. Standard seasoning rules.

Question 23

Can I use the IRRRL on an investment property?

Accepted Answer

Yes — as long as you previously lived in the home as your primary residence. This is one of the most underrated benefits of the IRRRL.

Question 24

Will my IRRRL require a credit check?

Accepted Answer

It depends on the lender, but many IRRRLs require minimal credit review — sometimes just a soft pull. Much lighter than a typical refinance.

Question 25

Can I streamline refinance my USDA loan?

Accepted Answer

Yes — if you have an existing USDA loan, the streamline-assist program lets you refinance with no appraisal, no credit review, and reduced documentation. You just need to be current on payments.

Question 26

Who qualifies for a USDA streamline-assist refinance?

Accepted Answer

You must currently have a USDA-guaranteed loan, be current on payments for the past 12 months, and the refinance must lower your monthly principal and interest by at least $50.

Question 27

Do I need a new appraisal?

Accepted Answer

No — the streamline-assist program waives the appraisal requirement, even if you owe more than the home is worth. That's huge.

Question 28

Can I take cash out with a USDA refinance?

Accepted Answer

No. USDA refinances are rate-and-term only. For cash-out, you'd refinance into a different loan type like conventional or VA.

Question 29

Is the USDA guarantee fee charged again on a refinance?

Accepted Answer

Yes — there's a 1% upfront guarantee fee and a 0.35% annual fee on the new loan. Both are typical of USDA loans.

Question 30

How long does a USDA streamline take?

Accepted Answer

Often 30–45 days, sometimes faster. The lack of appraisal speeds things up considerably.

Question 31

Can I remove a borrower from my USDA loan?

Accepted Answer

Generally no on the streamline — borrowers can be added but not removed. Exceptions apply for death or divorce.

Question 32

Can I refinance a jumbo loan?

Accepted Answer

Yes. Jumbo refinance options are available with competitive rates for well-qualified borrowers. You can do rate-and-term or cash-out, depending on your goals.

Question 33

What credit score do I need to refinance a jumbo loan?

Accepted Answer

Most jumbo refinance programs want 700+, with the best rates at 740+. Some niche investors will work with 680.

Question 34

How much equity do I need for a jumbo cash-out?

Accepted Answer

Most jumbo cash-out programs cap at 70–80% LTV. We have specialty investors who'll go higher for strong borrowers.

Question 35

Are jumbo refinance rates higher than purchase rates?

Accepted Answer

Usually within 0.125–0.25%. Refinance rates tend to track purchase rates closely on jumbo loans.

Question 36

How long does a jumbo refinance take?

Accepted Answer

Typically 30–45 days. Jumbo files have more documentation requirements, so responsiveness matters.

Question 37

Can I refinance from a jumbo to a conforming loan?

Accepted Answer

Yes — if your home value or principal balance is now within conforming limits. This often gets you a better rate and removes jumbo-specific reserve requirements.

Question 38

Are interest-only jumbo refinances available?

Accepted Answer

Yes. We offer interest-only jumbo programs for cash-flow-focused borrowers, typically with a 10-year I/O period followed by amortization.

Question 39

How much equity do I need for a cash-out refi?

Accepted Answer

Most lenders want you to keep at least 20% equity after the cash-out. VA cash-out refinances can go up to 100% in some cases.

Question 40

What can I use cash-out funds for?

Accepted Answer

Anything — home improvements, debt consolidation, college tuition, emergency reserves. There are no restrictions on how you use the funds.

Question 41

Are cash-out refinance rates higher than rate-and-term?

Accepted Answer

Slightly — typically 0.25–0.5% higher, since the lender takes on more risk. Still often the cheapest way to access large amounts of cash.

Question 42

How long does a cash-out refinance take?

Accepted Answer

Usually 30–45 days from application to funding. By federal law, there's also a 3-day rescission period after closing on a primary residence cash-out before funds are disbursed.

Question 43

Is cash-out refinance interest tax-deductible?

Accepted Answer

If the cash is used for substantial home improvements, the interest is generally deductible. If used for other purposes (debt consolidation, college, etc.), it's typically not. Talk to your CPA.

Question 44

How much cash can I take out?

Accepted Answer

Conventional cash-out is capped at 80% LTV (primary residence). FHA cash-out at 80%. VA cash-out can go up to 100% in many cases.

Question 45

What credit score do I need for cash-out?

Accepted Answer

Conventional cash-out generally needs 660+, FHA cash-out 580+, VA cash-out 580+. Higher scores unlock better rates.

Question 46

Can I do a cash-out refi on an investment property?

Accepted Answer

Yes. Conventional investment cash-out is typically capped at 75% LTV with stricter reserve and credit requirements.

Question 47

What counts as limited documentation?

Accepted Answer

Instead of traditional W-2s and tax returns, you can qualify using bank statements (12–24 months), asset statements, or 1099 income. Designed for self-employed borrowers and business owners.

Question 48

What credit score do I need for a limited-doc refinance?

Accepted Answer

Most bank statement and 1099 programs require 660+, with the best terms at 700+. Some programs will work with 620 at higher rates.

Question 49

How is income calculated on bank statement loans?

Accepted Answer

We typically use 50% of business deposits or 100% of personal deposits, averaged over 12–24 months. Specific calculation depends on the program.

Question 50

Can I do a cash-out limited-doc refinance?

Accepted Answer

Yes — both rate-and-term and cash-out are available with limited documentation, up to 80% LTV in most cases.

Question 51

Are rates higher on limited-doc loans?

Accepted Answer

Yes, typically 0.5–1.5% higher than full-doc loans. The convenience and approval flexibility usually outweigh the rate difference for self-employed borrowers.

Question 52

Can I use asset depletion to qualify?

Accepted Answer

Yes. We can calculate qualifying income from your liquid assets (typically dividing assets by 60 or 84 months). Great for retirees and high-net-worth borrowers.

Question 53

Do I need to be self-employed to qualify?

Accepted Answer

Most limited-doc programs target self-employed borrowers, but asset-based and 1099 programs work for various income types — including W-2 borrowers with substantial assets.

Question 54

Should I refinance my ARM before it adjusts?

Accepted Answer

If you plan to stay in the home long-term, locking into a fixed rate before your ARM adjusts is usually a smart move. If rates have dropped since you got your ARM, you could save significantly.

Question 55

How early should I refinance my ARM?

Accepted Answer

Most borrowers refinance 6–12 months before their first adjustment, especially if rates have dropped. Don't wait until your payment shocks you.

Question 56

Can I refinance into a new ARM?

Accepted Answer

Yes — if rates have dropped enough, refinancing into a fresh 5/1, 7/1, or 10/1 ARM can give you another long fixed period at a lower rate.

Question 57

Does refinancing my ARM reset the loan term?

Accepted Answer

It can. You can refinance into a new 30-year, a 15-year, or even a custom term. We'll model the trade-offs.

Question 58

Are there prepayment penalties on ARMs?

Accepted Answer

Most modern ARMs have no prepayment penalty. Older or non-QM ARMs sometimes do — we'll check your current loan before recommending anything.

Question 59

How much does it cost to refinance an ARM?

Accepted Answer

Same as any conventional refinance — typically 2–3% of loan amount in closing costs. Often recouped in 1–2 years through monthly savings.

Question 60

What if my ARM has already adjusted?

Accepted Answer

Refinancing can still make sense — especially if you're now paying significantly more than market fixed rates. Run the numbers with me.

Refinance Your Mortgage

Conventional Refinance

FHA Refinance

VA Refinance (IRRRL)

USDA Refinance

Jumbo Refinance

Cash-Out Refinance

Limited Documentation Refinance

ARM Refinance

Think you could save?