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Refinance Decision Center

March 10, 2016 / in Mortgages Explained / by tim

Curious which loan type to use for your refinance? Use this chart to help you decide.

Refinance Type

Use this loan to refinance if…

Min. Credit Requirements

Upfront Mortgage Insurance

Monthly Mortgage Insurance

HARP 2.0

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You currently have a loan held by Fannie Mae or Freddie
Mac and you’re underwater.

Good Credit: 660+

None

None, unless your current loan requires mortgage insurance

Conventional Refinance

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You have any loan type currently, and at least 20% equity in your home.

Good Credit: 660+

None

None except for LTVs above 80%

FHA Streamline

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You have an FHA loan

Fair Credit: 640+

From 0.01% to 1.75% of the loan amount depending on
closing date of previous FHA loan

Usually 0.85% of the loan amount per year

FHA Cash Out

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You have some equity in your home and need cash for any purpose

Fair Credit: 640+

1.75%

Usually 0.85% of the loan amount per year

VA Streamline

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You have a VA loan

Fair Credit: 620+

0.50% of the loan amount

None

VA Cash Out

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You are an eligible veteran and need cash for any purpose

Fair Credit: 640+

2.15% to 3.3% of your loan amount

None

USDA Streamline

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You have a USDA loan

Fair Credit: 640+

2.75% of the loan amount

0.50% of the loan amount per year

Reverse Mortgage

You are age 62 or older and want to eliminate monthly payments or
receive cash

Fair Credit but no minimum score

0.5% or 2.5% depending on loan amount and home value

1.25% of the loan amount per year.