Capital Home Mortgage Waco

Waco Mortgage Refinance

What is the Purpose of your Waco Mortgage Refinance

Waco Rate and Term Refinance

Are you having trouble keeping up with your mortgage payments? Have you wanted to take advantage of rate changes since you got your loan? You might want to consider a rate and term refinance to lower your interest payments or the monthly amount you pay. 

Let’s look at a rate and term refinance, how it works, and how you can refinance your home.

Rate And Term Refinance: The Basics

With a rate and term refinance, you can replace the terms of your existing loan with ones that better suit your financial situation. When you refinance your mortgage, you get a new loan, pay off the old one, and then start making payments on the new one. With a rate and term refinance, you can extend or shorten your loan’s repayment period, reduce the interest rate, or adjust your monthly payment. Lenders often refer to rate and term refinancing as regular refinance.

Requirements for Rate-and-Term Refinancing

Mortgage lenders will require that you meet a set of minimum qualifications when applying for a home loan. When refinancing your mortgage, you will find that more or less the exact requirements apply.

Expect to encounter the following requirements as you try to refinance your mortgage rate and term:

  • – Credit score: 

Lenders typically require a credit score of at least 620 (580 for FHA or VA loans) and solid credit history.

  • – Home equity: 

If you want the best interest rates, you should have at least 20% equity in your home by applying for refinancing. However, it is possible to refinance with less home equity if you desire.

  • – Debt-to-income ratio (DTI): 

The lower your DTI ratio is, the better. Wait until your debt-to-income ratio is at 30 to 50 percent or lower before refinancing your mortgage.

  • – Closing costs: 

Closing costs are fees paid when a property is purchased and can make up between 2 and 6% of the loan amount. Lenders will require you to pay them at closing, though homeowners willing to accept a higher interest rate may be able to include these costs in the refinanced loan.

Is Rate-and-Term Refinance For You?

Refinancing can be one of the most beneficial financial decisions you ever make. If you intend to stay in your home for a long time, lowering your interest rate by more than half a percentage point can make a significant difference in your budget.

However, lower interest rates must be available to you for rate-and-term refinancing to be effective. Refinancing is good if the market interest rates are at an all-time low or your credit has improved substantially, giving you access to lower interest rates. Furthermore, the costs of refinancing a home typically exceed $5,000, so you’ll need to figure out your break-even point.

Refinance With Capital Home Mortgage Today!

If you think a rate-and-term refinance makes sense financially, Capital Home Mortgage can provide you with refinancing options tailor-made to your needs and budget. We also offer Streamline Refinancing for FHA-insured mortgages. As a direct mortgage lender in Waco, Texas, we have complete control of the mortgage process and can close the loan as scheduled. 

If you need more information about rate-and-term refinancing and what it entails financially, contact us at (254) 213-7343. Our Home Loan Specialists will be more than happy to answer any mortgage-related questions you have. 

Why Waco is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Waco Rates

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Waco Customer Service

7  Day a Week Support from Application to Final Mortgage Payment. 

Waco Mortgage Rates

Capital Home Mortgage Waco is dedicated to offering Great Waco Mortgage Rates.

Call now to speak with a Loan Officer or request a no obligation custom rate quote.

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Waco FHA Home Refinance Loan

FHA offers a streamline refinances that simply reduces the interest rate and lowers the payment or shortens the term of the loan.  This rate and term option can be fully documented loans, or can be reduced documentation. The other FHA option is a cash-out refinance allowing homeowners the ability to access the equity in the property. (Not Allowed in Texas)

FHA Standard Refinance

  • Appraisal Required
  • 97.75% Max Loan to Value
  • Closing Costs Can Be Rolled In
  • 80% Max Loan to for Cash-out
  • Cash-out Option Available
  • County Loan Limits Apply

FHA Streamline Refinance

  • FHA to FHA
  • No Income Qualification
  • No Appraisal Required
  • Closing Costs Cannot Be Rolled In
  • No Lates on Mortgage in Last Year
  • Payment Must Drop on Fixed Rates

Waco VA Home Refinance Loan

VA Home Mortgages offers two types of refinances. The first is an Interest Rate Reduction Loan known as an IRRRL, which is a VA loan to VA loan.  The second is full documentation as rate and term or cash-out. The IRRRL is the most popular refinance as it requires no income verification, no appraisal, requires that the mortgage payments have been paid on time for the past 7 months and that there is a tangible benefit for the veteran.  Second is a full documentation loan requiring income verification and an appraisal.  This can be either a rate and term conversion from another type of mortgage program or a cash-out of equity. (Texas Excluded)

VA Home Refinance

    • Appraisal Required
    • Closing Costs Can Be Rolled In
    • 90% Max Loan for Rate and Term
    • Cash-out Option Available
    • Primary Residence Only

VA Streamline Refinance

  • VA to VA
  • No Appraisal Needed
  • No Income Documentation Needed
  • Reduced Funding Fee – Financed
  • Primary and Investment Properties

Waco USDA Home Refinance Loan

USDA Home Mortgages offer only USDA to USDA refinancing. All USDA program guidelines still apply including the geographical and income restrictions.

  • Rural Properties Only
  • Primary Residence Only
  • New Manufactured Homes Allowed
  • Closing Costs & Repairs Can Be Rolled In

Waco Conventional Home Refinance

Conventional Home Mortgages offers refinancing with higher loan limits and offers more options but require full documentation for income assets and usually an appraisal unless a property inspection wavier is granted.
    • Primary, Secondary & Investment Properties
    • Single Family, Duplex, Tri and 4-Plex
    • Rate and Term
    • Cash-Out Equity
    • Loan to Value Restrictions Apply
    • County Loan Limits Apply

Waco Jumbo Home Refinance Loan

Jumbo Home Mortgage refinancing requires the same higher credit standards and equity that purchase transactions require. 

  • Up to 3 Million Loan Amounts
  • Up to 90% Loan to Value (Credit Restrictions Apply)
  • Base Loan Amounts Varies by State and County
  • Subject to Investor Requirements

Waco Reverse Mortgage Refinance Loan

Covert a Traditional Mortgage into an Equity Line… Stop Monthly Mortgage Payments.

  • Primary Residence Only
  • Simple Qualifying – Equity Based
  • Credit Scores Not Applicable
  • Minimum Age 62

Waco Native American Refinance Loan

Native American Home Loans have 3 types of refinances available, Full Documentation, Streamline and Rehabilitation. 

Native American Renovation Refinance

  • Appraisal Required
  • 97.75% Max Loan to Value
  • Closing Costs Can Be Rolled In
  • 85% Max Loan to for Cash-out
  • Cash-out Option Available
  • County Loan Limits Apply

Native American Standard Refinance

  • HUD 184 to HUD 184
  • No Income Qualification
  • No Appraisal Required
  • Closing Costs Cannot Be Rolled In
  • No Lates on Mortgage in Last Year
  • Payment Must Drop on Fixed Rates
Not Sure? Take a Look at Other Waco Mortgage Programs

Waco Texas Mortgage Team

Conor Hayhurst

Managing Director
NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

Chris Erwin

Loan Officer
NMLS 914064

Dale Gremillion

Manager
NMLS 210325

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