Top Reasons to Refinance Your Mortgage in Today's Market

At Alpine Mortgage, we help homeowners make smarter financial moves every day. If you haven’t reviewed your mortgage lately, now may be the perfect time. Here are the most compelling reasons to consider refinancing

Lower Your Interest Rate and Monthly Payment

Rates change often and if your rate is higher than today’s market, you could be overpaying every month. A refinance may significantly reduce your monthly payment and save you tens of thousands over the life of your loan.

Tap Into Your Home’s Equity with a Cash-Out Refi

Home values have risen, and your home may be worth more than you think. A cash out refinance lets you access that equity to pay off high interest debt, fund home improvements or invest in your future.

Switch to a Fixed Rate

If you’re in an adjustable rate mortgage (ARM), you may be at risk of rising payments in the future. Locking in a low fixed rate can protect you from uncertainty.

Payoff Your Mortgage Sooner

If your income has grown, switching to a 15- or 20-year term could save you a significant amount in interest and help you become mortgage-free faster.

Remove Private Mortgage Insurance (PMI)

If you bought your home with less than 20% down, you might still be paying private mortgage insurance (PMI). But if your home has appreciated, refinancing could help eliminate that monthly expense.

Consolidate Debt at a Lower Interest Rate

Rolling high interest debt into a low rate mortgage can simplify your finances and lower your total monthly payments.

You Qualify for Better Terms Now

If your credit score has improved since you first got your mortgage, you may now qualify for more favorable terms.

Loan Programs for Refinances

Various loan programs are available for those interested in a refinance, each catering to different borrower needs and circumstances. Here's a closer look at some of our most common options:

Conventional Refinance

This is a common refinance that conforms to the loan limits and requirements set by Fannie Mae and Freddie Mac. Borrowers typically need a credit score of at least 620 and must have a debt to income ratio of no more than 50%. Conventional loans allow homeowners to refinance up to 97% of their home's value if they are not taking any cash out, which means you need to maintain at least 5% equity in your home after the refinance.

FHA Refinance

The Federal Housing Administration (FHA) offers refinancing for those with lower credit scores and less home equity. Borrowers usually need a credit score of 580 and lust have a debt to income ratio of no more than 57%. FHA refinance allows up to 97.75% loan-to-value ratio if not taking cash out on the new mortgage. This option requires mortgage insurance, regardless of the equity stake, which could increase the overall cost of the loan but makes refinancing accessible for those with less than perfect credit.

VA Refinance

Available to veterans, active-duty service members, and select military spouses, VA refinance options are offered through the U.S. Department of Veterans Affairs. This program allows borrowers to refinance up to 100% of their home's value, which is a higher potential cash out than other loan types. A significant benefit of this option is the absence of mortgage insurance and potentially lower interest rates.

Non-QM Refinance

Non-Qualified Mortgage loans (Non-QM loans)  are often used by borrowers who have non-traditional income sources or who are investors. These loans can be more flexible in terms of income verification and credit score requirements. Non QM loans usually allow borrowers to refinance up to 80& of their home's value.

Reverse Mortgage Refinance

A reverse mortgage refinance is available to homeowners who are 62 years or older. It allows them to convert part of the equity in their homes into cash without having to sell the home or take on additional monthly mortgage payments. Instead, the loan is repaid when the borrower moves out or sells the home. This can be a valuable financial tool for retirees needing to supplement their income.

How to Get Preapproved for a Refinance

Getting pre-approved for a refinance is quick and easy with our online Loan Application. After completing the application, you will receive instructions on how to upload your documents. For a list of documents you will need to upload, see our Pre-approval Document Checklist.

Alpine Mortgage maintains a team of highly skilled industry professionals familiar with the company’s refinance rates and products. We offer refinances in the following states: California, Colorado, Connecticut, Florida, Georgia, New Jersey, New York, Pennsylvania and Texas. 

Call us today at (800) 876-LOAN to speak with one of our refinance specialists or click here to have one of our refinance specialists contact you.

If you are interested in applying for a refinance, you can apply online now.

Refinance FAQs