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Refinance your home loan

  • Save money on interest

  • Lower monthly payments

  • Get cash from home equity

  • Shorten the life of the loan

  • Make payments more predictable

  • Stop paying mortgage insurance

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Let Us Personalize Your Home Loan

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What do you want to do?

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How much can you save by refinancing your mortgage?

When you are thinking about a refinance, important questions to answer include How much money could you save? and What might your new monthly payment be? That’s why we developed our Mortgage Refinance Calculator. Try it for yourself!

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How much can I save?

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Keep in mind that the Mortgage Calculator merely provides an estimate on how much your mortgage payment will be based on the information you provide. The calculator does not take into account your overall financial situation so your actual rate and payment may be higher.

To get a more precise understanding of the comparative benefits of different loan types, speak with a loan advisor at Freedom Mortgage.

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This calculator has four sections. The Current Loan, section asks to input information about the mortgage you have right now. The New Loan section asks for information about a new mortgage you might get and includes fields for loan fees and closing costs. It’s important to consider these costs and fees when you are deciding whether refinancing makes sense for you.

The Home Info section asks you to input the current appraised value of your home and the number of years you expect to live in it after your refinance. Lenders use the value of your home to help them decide if you qualify for a mortgage as well as the terms they might offer you. How long you plan to live in your home after you refinance is also important to think about. That’s because the longer you live in the house, the more money you might save.

Finally, the Taxes & Insurance section asks you to input the escrow payments for taxes and homeowner’s insurance that are part of your monthly mortgage bills. The calculator needs this information to help estimate how much your new payments might be.

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How to Refinance Your Home’s Mortgage: A Comprehensive Guide

We’ve put lots of information about refinancing your mortgage in one place. Below you can learn more about what refinancing means and whether it makes sense for you.

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Conventional
REFINANCE
VA
REFINANCE
FHA
REFINANCE
USDA
REFINANCE
Appraisal Needed Yes Appraisal Needed No for Streamline Appraisal Needed No for Streamline Appraisal Needed No
Income Verification Yes Income Verification Varies by loan Income Verification Varies by loan Income Verification Varies by loan
Credit Requirements Yes Credit Requirements Varies by loan Credit Requirements Varies by loan Credit Requirements Varies by loan
Mortgage Insurance Yes, if less than
20% equity
Mortgage Insurance No Mortgage Insurance Yes Mortgage Insurance Yes
Loan-to-Value Ratio (LTV) limit Yes Loan-to-Value Ratio (LTV) limit Varies by loan Loan-to-Value Ratio (LTV) limit Varies by loan Loan-to-Value Ratio (LTV) limit Varies by loan
Loan Restrictions Any Loan Type Loan Restrictions Must Have a VA loan Loan Restrictions Must Have an FHA loan Loan Restrictions Must Have a USDA loan
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If you have a VA or FHA loan, you may be able to refinance these loans using the streamline process. A streamline refinance can have fewer paperwork and documentation requirements, which saves time for borrowers who qualify.

You need to have an existing VA loan or FHA loan to be eligible for the streamline process. When you have a VA loan, you can only use the streamline process to replace it with a new VA loan. The same is true for FHA loans. You can only use the streamline process to replace an existing FHA loan with a new FHA loan.

Finally you can only use a VA Streamline Refinance or an FHA Streamline Refinance to get a better rate or better terms on your new mortgage. You can’t take any cash out using the streamline process.

Freedom Mortgage customers with existing VA or FHA loans may qualify for additional benefits when they choose Freedom Mortgage for their streamline refinances.

How to refinance your mortgage

It’s important to decide if refinancing your mortgage makes financial sense. Many people do this by calculating a break even point. Your break even point is the moment when the costs of a refinance have been paid for by the money it saves.

For example, if you are thinking about a refinance which will save you $100 a month and has $1,500 in closing costs, it will take you 15 months to break even and begin to save money. And the longer you live in the house, the more money you will save. This is the reason real estate professionals often recommend you do not refinance when you are planning to sell your house in the near future. That’s because the savings from a refinance might be minimal if you only live in the house a short time before you sell.

There are other important steps to take when you want to refinance your mortgage. These steps include:

  • Checking your credit score and finances

    Lenders use your credit score to help them decide whether you qualify for a loan and the interest rate they might be willing to offer you. So it’s a good idea to review your credit score and credit report to make sure they are accurate. Your income, how much you owe on loans besides your mortgage, and your payment history can also affect your eligibility for a refinance.

  • Estimating your home’s value

    Your home’s current market value can influence whether you qualify for a refinance. That’s because lenders use your house’s value to calculate a loan-to-value ratio. Loan-to-value ratio is a percentage you get by dividing the size of a mortgage by the value of the house it’s financing.

    For example if a home is worth $200,000 and a borrower would like to refinance that home with a $150,000 mortgage, then the loan-to-value ratio is 75%. (Calculation: $150,000 ÷ $200,000 = 0.75 or 75%.)

    Most lenders have maximum loan-to-value ratios on the loans they offer. Borrowers have to stay below these maximums to qualify for a loan. Lenders prefer refinances with lower loan-to-value ratios because they might see these loans as less risky.

  • Researching interest rates and loan terms

    Talk to different lenders when you are thinking about refinancing and get a couple quotes. The interest rates and other terms you might be offered can vary from lender to lender depending on a broad range of factors, and the closing costs and other requirements can vary too.

    Freedom Mortgage customers can also enjoy the benefits of our Eagle Eye program, which monitors current market conditions and looks for ways our customers might save money by lowering their interest rate, get cash from their home’s equity, and more.

Freedom Mortgage Loan Advisors are happy to answer your refinancing questions! Visit our Get Started Page or call us today at 877-220-5533.

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What our customers say about refinancing their home loans

Check out the reviews from some of our customers.

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Already a Freedom Mortgage Customer?

Our Eagle Eye Pledge keeps an eye on your mortgage.

When you're a Freedom Mortgage customer, we'll activate our Eagle Eye pledge to keep an eye out for ways to put more money in your pocket. If we find a lower rate during the time you own your home, we’ll reach out to you to refinance. With no closing costs and the ability to skip a payment, we’ll give you the freedom to focus on your home and your life, while we keep an eye on your mortgage.

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Contact Us

Get started today by getting a personalized evaluation of your home loan options from Freedom Mortgage.

877-220-5533