Refinance Loan Types and HELOC Options

Rate-and-Term Refinance

Alters either the interest rate, the term of the loan, or both. Aimed at reducing monthly payments or changing the duration of the mortgage.

Cash-Out Refinance

Enables homeowners to refinance their mortgage for more than the current balance and withdraw the difference in cash. Ideal for large expenses or debt consolidation.

Cash-In Refinance

Homeowners pay a lump sum at closing to lower their mortgage balance, which can help secure a lower interest rate or remove private mortgage insurance (PMI).

FHA Streamline Refinance

A simplified refinancing option for holders of existing FHA loans. Requires minimal documentation and no appraisal, focusing on lowering interest rates or changing loan terms.

VA Streamline Refinance (IRRRL)

Designed for veterans with VA loans, offering an expedited refinancing process with less paperwork and no appraisal to reduce interest rates or monthly payments.

USDA Streamline Refinance

Available for current USDA loan holders, aimed at reducing interest rates and monthly payments with minimal paperwork.

Home Equity Line of Credit (HELOC) Refinance

A revolving line of credit based on home equity. It allows homeowners to borrow against their home equity at their discretion up to a certain limit.

Home Equity Loan Refinance

A lump-sum loan that lets homeowners borrow against the equity in their home, typically used for consolidating debt or funding large expenses.

HARP Replacement Refinance Programs

Programs like the High LTV Refinance Option and Freddie Mac Enhanced Relief Refinance are designed for homeowners with little equity or underwater mortgages.

No-Closing-Cost Refinance

The lender covers the closing costs, but typically charges a higher interest rate. Beneficial for homeowners who plan to stay in their homes for a shorter period.

VA Loans and HELOC

While the VA does not directly offer HELOCs, homeowners with VA loans may obtain a HELOC through private lenders based on home equity and lender policies.

FHA Loans and HELOC

Homeowners with FHA loans can seek HELOCs from private lenders, although availability and terms depend on individual lender requirements and home equity.