Refinancing a Home

If you are refinancing a home, Lynx Financial Group offers many types of mortgage programs.

Conforming Loan (insured by Fannie Mae/Freddie Mac)

Conforming Loans are loans that conform to GSE (aka Fannie Mae and Freddie Mac) guidelines. The Conforming loan limits for 2012 remain at previous set limits, $417,000 for a one family home. The maximum Loan to Value Ratio (loan amount divided by your home's value)is 97%. Private Mortgage Insurance and Escrow accounts will be required on loans with less than a 20% equity. Borrowers will be subject to Loan Level Price Adjustments (LLPAs), set by the GSEs, based on credit score and Loan to Value ratio (LTV).

FHA Loan (insured by the Federal Housing Administration)

FHA loans cannot exceed the statutory loan limit, which can be found here: FHA LOAN LIMITS. The maximum Loan to Value Ratio for an FHA refinance is 97.75% if you are just refinancing the mortgage or 85% if you are getting cash out, and is subject to both an Up Front Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP) which is paid monthly. The UFMIP is paid once and is generally financed by adding it to the loan amount. MIP is similar to PMI, as it is paid monthly. Credit requirements for an FHA loan are less stringent than requirements for a Conforming Loan.

An FHA Streamline Refinance allows a homeowner who currently has an FHA mortgage to refinance into a new FHA mortgage with reduced documentation requirements. There is no appraisal required, and in most instances no income documentation.

USDA Loan

In order to be eligible for a USDA Rural Development refinance the homeowner must currently have a USDA mortgage. USDA's Rural Development refinance requires a Funding Fee (similar to FHA's UFMIP) and Monthly Mortgage Insurance.

VA Loan

Designed to offer financing to eligible American veterans or their surviving spouses. VA loans require a Funding Fee (again similar to FHA's UFMIP and USDA's Funding Fee) that is based on whether the veteran is Active Duty/Veteran or Reservists/National Guard and on the loan category (less than 5% down payment, 5-10% down payment, 10% or more down payment, etc.). VA loans are subject to maximum loan limits found here: VA's County Loan Limits PDF. The maximum Loan to Value Ratio for a VA refinance is 100% if just refinancing the mortgage, or 90% if taking cash out.

The Loan Process

Below is a brief overview of the refinance process.
Each client's situation is different, so the following is only a guide:

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