Refinancing a Home Equity Loan

Refinancing Home Equity Loans

What Loans are Available for Refinancing a Home Equity Loan?

Conventional Refinancing Loans - Ideal for Borrowers with Excellent Credit and a Substantial Home Equity
Conventional Home Refinancing Loans are more credit score driven than other loan types and at least a 620 FICO score is generally required to obtain an approval. Conventional refinancing guidelines are currently written in a way that a borrower with a 740+ credit score can usually obtain the best interest rate possible. As a borrowers credit score decreases below a 740, sizable fees and home equity refinance rates could be added, in excess of the 1-2 percent range. If your credit score is less than perfect, an FHA Loan, USDA Loan or VA Loan could be a better fit for you.

FHA Refinancing Loans - Ideal for Borrowers who have Less Than Perfect Credit and a Smaller Home Equity
FHA Refinancing Loans are not totally credit score driven, although at least a 620 FICO score is usually required to obtain an approval for refinancing equity loans. FHA equity loan refinancing guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an FHA House Loan. For FHA Refinance Loans, if the borrower does not take cash out then the maximum financing will be 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower. If the borrower wishes to take cash out of the property, then the maximum financing amount is 85% of the current appraised value.

VA Loans - Ideal for Borrowers who are Veterans of the US Armed Services
A 620 FICO score is generally required to obtain a VA Refinance Loan approval. For VA Refinance Loans, if the borrower does not take cash out then the maximum financing will be 100% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower. If the borrower wishes to take cash out of the property, then the maximum financing amount is 90% of the current appraised value.

Additional lender offers.

Mortgage Rates by Mortgage Loan Directory and Information.

What Types of Mortgages are Available for Refinancing a Home Loan?

Conventional Loans
Conventional Refinancing Home Equity Loan requirements are more credit score driven than other loan types and a 620 FICO score is generally required to obtain an approval. Conventional Loan guidelines are currently written in a way that a borrower with a 740+ credit score can usually obtain the best interest rate possible. As a borrowers credit score decreases below a 740, sizable fees and rate increases could be added, in excess of the 1-2 percent range. If your credit score is less than perfect, an FHA Loan, USDA Loan or VA Loan could be a better fit for you.

FHA Loans
FHA refinancing equity loans are not totally credit score driven, although a 620 FICO score is generally required to obtain an approval. FHA mortgage guidelines are written in a way that provides the borrower the benefit of the doubt that there had been, at some point in their past, circumstances beyond their control, and as long as the borrower has recovered from those circumstances in a reasonable manner, they're generally going to be credit-eligible for an FHA mortgage.

VA Loans
VA Loans require no down payment and no mortgage insurance. A 620 FICO score is generally required to obtain a VA loan approval.