Mortgage Refinancing Killeen, TX

As a mortgage broker based in Killeen, TX, I love helping homeowners save money on their mortgage. While I always love helping homeowners purchase, helping people refinance their mortgage is just as rewarding.

Whether you’re refinancing to lower your payment or taking cash out for debt consolidation or home improvements, my goal is to get you the best possible option that matches your financial goals.

What is Considered a Refinance?

A refinance is an entirely new mortgage that replaces your existing mortgage – typically with better terms to match your current financial situation. There are several types of refinance loans available, including:

  • Rate and Term Refinance: This allows borrowers to lower their interest rate and/or change the term of their mortgage.
  • Cash Out Refinance: A cash out refinance allows borrowers to take out a new mortgage that’s larger than their existing mortgage and receive the difference in cash. The borrower must have enough equity in their current mortgage to qualify.
  • Streamline Refinance: This type of refinance loan is available to borrowers who have an existing FHA, VA, or USDA loan. It allows them to refinance their mortgage with minimal documentation and underwriting requirements.

Keep in mind that there are closing costs, appraisal fees, and other costs involved with a refinance. Sometimes you are able to roll these costs and fees into the loan so you don’t have to pay anything out of pocket.

Benefits of Refinancing Your Mortgage

Refinancing a mortgage can have several benefits for homeowners.

Lower Interest Rates

Perhaps the biggest benefit of refinance your mortgage is to lower your interest rate. By lowering your rate, you will not only save on your monthly mortgage payment but you will also save thousands of dollars over the life of the loan!

Lower Monthly Payments

You can lower your monthly mortgage payment through refinancing by either lowering your interest rate and/or removing PMI by refinancing from a FHA loan to a conventional loan.

Modify Your Loan Terms

Refinancing can also help homeowners shorten(or lengthen) their loan term. By shortening your loan term to a 15-year mortgage, you will pay off your home faster and reduce the overall interest paid over the life of the loan. Shortening the loan term can also help homeowners build equity in their homes faster.

Take Cash Out

Another benefit of refinancing is cash-out refinancing. This allows homeowners to access the equity in their homes and receive a lump sum of cash. Homeowners can use the cash for home improvements, debt consolidation, or other expenses.

Refinance Qualification Requirements

Qualifying for a refinance is similar to that of a purchase, after all they are both mortgages. Depending on your goal of the refinance your credit and income profile should be around the same or better as it was when you first obtained your mortgage. Some basic factors include:

Credit Score

One of the most important factors in qualifying for a refinance loan is the credit score. Lenders typically require a credit score of at least 620 to consider a refinance application. However, a higher credit score can increase the chances of approval and may even result in better interest rates.

Debt-to-Income (DTI) Ratio

Another important factor that lenders consider is your DTI ratio. Most lenders prefer a DTI of 43% or lower. A lower DTI indicates that the borrower has a lower risk of defaulting on the loan.

Home Equity

The amount of equity in the home is also an important factor in qualifying for a refinance loan. Lenders generally require a minimum of 20% equity in the home to consider a refinance application. However, some lenders may be willing to consider applications with less equity.

Ready To Refinance?

Refinancing your home in Killeen, TX can be a great option if you are looking to take some cash out, lower your payment, or shorten your term. I would love the opportunity to earn your business, please reach out to me with any questions!

Neil Johnson Loan Officer

Neil Johnson

Ready To Get Started?

Licensed in:

  • Texas
  • Arizona
  • Minnesota
  • Montana
  • North Dakota

Ready To Get Started?

Click below to see how our clients save on average $8,762 by working with us!

View All Testimonials