Teachers who wish to lower their monthly mortgage payments, take cash out, change loan terms, or remove mortgage insurance will be enthused to learn about our lenders unique refinancing programs. The majority of teachers that refinance with one of our lenders choose either a conventional or FHA loan.
What is the best refinance loan for you? That largely depends on what type of loan you currently have and what your objectives and goals are in refinancing.
For teachers (and others in qualifying education-related jobs, such as principals and other school faculty) who purchased their home through the FHA or have most recently refinanced through the FHA will want to first consider an FHA streamline refinance. This streamline program is a quick, easy, and affordable option to lower your interest rate and monthly payments. Also, teachers that seek to take the maximum amount of cash out of their home will want to apply for an FHA cash out refinance since FHA loans allow the maximum LTV on cash out loans (which is 85% of the appraised value). It does not matter what type of loan you currently have, you may apply for a FHA cash out refinance. Only the FHA streamline loan program is restricted to those who currently have an FHA-insured loan.
Teachers who have built up a large amount of home equity should look to see if they are now eligible to drop their mortgage insurance payments. FHA loans require MIP (mortgage insurance premiums) and other loans such as conventional mortgages have PMI (private mortgage insurance). Removing mortgage insurance from a loan can save one thousands of dollars over the life of the loan.
We would love to learn about what you hope to accomplish by refinancing, and we will present to you all of your options, and guide you to the best lender possible.