Refinance your FHA or VA Loan at NO COST!

FHA and VA have developed a "Streamline Approach" to lower your interest rate. Under these programs, you may lower your payments and pay absolutely nothing.

Cashout Refinancing
Cashout refinances are one of the most popular types of loans. These loans enable homeowners to tap into the appreciated equity in their homes and use this money to remodel, invest, and payoff consumer debt. This loan can also be used to finance an education or to start a business. This type of loan is popular because homeowners can consolidate their bills and still write off the interest for their income taxes. About 60% of refinances are for the purpose of pulling cash out.

Interest Only Mortgage
An Interest only mortgage can be an excellent choice for some borrowers. They are designed to offer the lowest payment possible as you are not paying anything toward the principal in your normal monthly payment. Of course, you may make additional payments toward your principal balance at any time.

The interest only product was originally designed for individuals whose income is cyclical. For example, an individual who is a sales executive with a relatively low base salary but commission or bonus payouts quarterly would benefit from an interest only mortgage. You would have the lowest possible payment during months when no bonus is paid and you would be able to make contributions to the principal balance when the quarterly bonus is paid. However, I am seeing individuals in many situations choosing this option as a method of lowering their payment, sometimes significantly. The benefit is this allows you to pay additional principle at anytime and your payments will automatically recalculate. For example, you buy a new home prior to selling your old home. Once you settle on your old house you take the proceeds and pay down your loan on the new mortgage. The new mortgage will now readjust your payments

Generally, interest only mortgages are available for a 30 year term, with the first 5 or 10 years interest only (depending on the lender selected) and the final 20 to 25 years fully amortizing . Some lenders who offer an interest only mortgage require a prepayment penalty for the first 1-3 years and have caps on the amount your rate can change at any time and over the life of the loan. I always try very hard to avoid prepayment penalties on these and other types of loans and can usually work around the requirement. Another useful feature of some interest only mortgages is that if you choose to make a principal payment during the interest only period, your balance is reduced the following month lowering your payment further.

Again, an interest only mortgage is not the right choice for everyone, but it can be a very effective choice for some individuals.

Please give me a call or send an email and I will be happy to discuss this alternative with you.